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Just looking to see how everyone else handles this.
I have a small subdivision near me that has had one resale home ever. This resale was over 3 years ago.
All the parcels are between 5 and 10 acres and the homes are between 3000 and 6000 sq ft living area but not similar in style at all.
There are no expired listings.
I have worked up a cost less depreciation and replacement cost but was looking to see if anyone else has another method they use.
Pull up everything in the expected ballpark price range and figure where it fits in to sell in a reasonable amount of time. If in doubt, start high and lower price periodically.
Just looking to see how everyone else handles this.
I have a small subdivision near me that has had one resale home ever. This resale was over 3 years ago.
All the parcels are between 5 and 10 acres and the homes are between 3000 and 6000 sq ft living area but not similar in style at all.
There are no expired listings.
I have worked up a cost less depreciation and replacement cost but was looking to see if anyone else has another method they use.
Ouch! That's a tough one. And could be even tougher if the buyer needs financing, in which case you hope the lender hires a really good appraiser that can accurately appraise a unique property.
Are there any similar neighborhoods anywhere in the area? An appraiser is allowed to go beyond the normal range if there are no comps in the immediate area. I just recently sold a house (I represented the Buyer) where the appraiser went about 7 miles away to pick up a really close comp.
It is a rural area outside of the subdivision with orange groves right around the corner.
One appraisal that was done in there used comps between 5-10 miles away.
It all gets thrown off when you look at the extras. One house has a $90,000 designer kitchen, one has $30,000 surround sound system, another has $100,000 in custom brick work.
Guess we just need one to sell to set a benchmark.
This reminds me of the trouble I had with a price being set on my beautiful 1924 home with a 30'x50' finished on the inside heated and cooled shop. My place has everything you would want in a nice rural home. The comps used were from in town - no comparision really. There isn't another place as unique as this one that has sold. Not many pieces of property are ever sold in this area. The buyers appraiser said all my "extras" were not worth anything - I was taking the value with me. Needless to say I didn't sell.
It's been my experience that people who are purchasing acreage property look in several different "comparable areas." Here in Salem that would encompass a couple of smaller towns. So if I am trying to comp a unique property in south Salem, I will also pull from Jefferson and Turner acreage properties since they have similar views and terrain. While it is not ideal, it helps to get me into the ballpark. Buyers who look down south also tend to look in these areas.
Are there any areas that are comparable in terms of quality to the subdivision that are maybe out of the appraisal range, but would draw a similar buyer?
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