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The word "comps" means "comparable". You cannot compare two properties miles away. You can only compare properties in the same neighborhood, same age, same size, and hopefully same builder. Land costs vary widely across cities so the land in one area might cost pennies compared to the other area. It's about location location location, and the exact same house will see at different prices in multiple neighborhoods.
The word "comps" means "comparable". You cannot compare two properties miles away. You can only compare properties in the same neighborhood, same age, same size, and hopefully same builder. Land costs vary widely across cities so the land in one area might cost pennies compared to the other area. It's about location location location, and the exact same house will see at different prices in multiple neighborhoods.
So given the extremely low inventory, there really aren't houses selling in the same neighborhood. So at that point, it's a bit of a guess, eh?
Over the last few months, I've watched comparable Condo 'asking' prices in the area ... and seen many shoot-up an average of 20-30-percent. Destin is a unique market, but, not that 'unique.'
IMO, recent 'good news' and 'projected trends' in the housing market ... is having more of an impact than actual sales. This reflects a lot of pent-up sales pressure exists among folks sitting on the sidelines with highly price-reduced properties ... and 'hoping' to recover some of their 'bubble losses.'
Since buyers, not sellers, determine the 'market', one would think that these increases would not hold, however, in this particular market, many investor/buyers see increases as a 'sign' that the market is taking-off without them, ... so they better buy now! Can this perceived reality, become reality? -- It probably shouldn't, but, this market area was the last to decline ... and inventories also seem to be declining.
I may end up having to spend $350k on a house in March that was worth only $280k in January. It defies logic.
Imagine how millions of sellers felt when they realized the house they paid $350K for would only fetch $280K in the open market.
All markets are local, down to the neighborhood/sub division and often times the street.
Unless you or you agent have personally toured the recent closed comps, they may or may not be comparable to your target property.
With the " national" noise about real estate, it's likely new spring listings will be asking more in many areas, this year. Asking may or may not mean sold and closed.
Are you using a local real estate agent who has the pulse of the local market?
What I've found is the asking prices tend to be less than the sale price...
I'm in the SF Bay Area.
Seems homes are priced to generate traffic and interest and then the real work starts... like 10 days of accepting offers or coming back after the 10 day period and inviting those that made offers to submit highest and final offers.
The last home I was interested in was listed for 550k... I think 16 offers came in during the first 10 days and then the call went out for highest and best... home was in escrow after 14 days at 800k cash...
Hmm yeah, I'm not sure what to do with the fixer upper property. I doubt the owner thinks it's a fixer upper (He thinks he fixed it up, judging by the listing...) My buyer's agent says a lot of the little repairs/etc were of obvious poor quality (like jagged crooked tiles.) I am not afraid of DIY. The little cracker box I live in now was a wreck. Now it's nice. All self-done, minus permit-requiring work.
Best I can do is bid what I can pay and see what happens.
The word "comps" means "comparable". You cannot compare two properties miles away. You can only compare properties in the same neighborhood, same age, same size, and hopefully same builder. Land costs vary widely across cities so the land in one area might cost pennies compared to the other area. It's about location location location, and the exact same house will see at different prices in multiple neighborhoods.
However, appraisers can and do make adjustments if there are insufficient comps in the area (says one who teaches appraisal to appraisers in this area). They will go to the closest similar neighborhood in which they can find comps and use them. Important stuff to know when you're doing a comparative market analysis and there simply aren't sufficient comps in the neighborhood (which is often the case in this area depending on what kind of property you're looking at). And if you're doing larger properties, either with small acreage (1 to 5 acres) or farm and ranch, you might be looking miles away to find a comp.
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