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I hate to compare houses based on comps. You cannot find two identical houses - houses will be on different lots at list with different features inside. If someone felt in love and offered extra thousands for similar house it doesn't mean other buyers will be willing to do the same.
The whole point of "comps" is that they are similar, not identical. The word "comp" is short for "comparable," which means "of equivalent quality" or "worthy of comparison."
Nobody said they would be exactly alike. But you have to have SOMETHING to compare it to. Otherwise people would just pull prices out of their *****.
The whole point of "comps" is that they are similar, not identical. The word "comp" is short for "comparable," which means "of equivalent quality" or "worthy of comparison."
Nobody said they would be exactly alike. But you have to have SOMETHING to compare it to. Otherwise people would just pull prices out of their *****.
This is exactly what some people are doing in our area now LOL
I made an offer that the agent refused to present... he pulled out a signed letter from the owner directing him to not to forward any offer less than full price...
Two years later the home was still for sale... the market had improved and I came back with a full price offer subject to the seller carrying a first deed of trust, 30 due in 7 and credits for a new roof and foundation work.
My offer was accepted.
The owner had told everyone in her family she would wait until she got her price... and she did!
Paying taxes, property insurance, CDD/HOA if any, mortgage payments if any and so on for 2 years doesn't make today's price equal to 2 years ago price.
Expenses were low... Prop 13 property tax of $1200 a year... no mortgage, HOA, etc...think insurance lapsed too since it was vacant and I had to go Fairplan for the first year...
The art of the deal is often in a win/win... never a lose/lose... sometimes it's somewhere in the middle.
Had a similar deal on a commercial property owned by a widow that has been vacant for 4 years... her husband tol6d her not to accept anything less than a million dollars for the 10,000 square foot store and warehouse and in 2006... that was a fair number... they had it leased and the lease holder wanted to buy and offered 800k... she said no and when the lease term ended he moved and it was vacant 4 years... she is 87 and in failing health... her son and daughter urged her to just make a deal and she sold it for 600k.
People are not all rational and often emotion rules...
Expenses were low... Prop 13 property tax of $1200 a year... no mortgage, HOA, etc...think insurance lapsed too since it was vacant and I had to go Fairplan for the first year...
The art of the deal is often in a win/win... never a lose/lose... sometimes it's somewhere in the middle.
Had a similar deal on a commercial property owned by a widow that has been vacant for 4 years... her husband tol6d her not to accept anything less than a million dollars for the 10,000 square foot store and warehouse and in 2006... that was a fair number... they had it leased and the lease holder wanted to buy and offered 800k... she said no and when the lease term ended he moved and it was vacant 4 years... she is 87 and in failing health... her son and daughter urged her to just make a deal and she sold it for 600k.
People are not all rational and often emotion rules...
what areas? I heard it from local agents, but then I am puzzled why 95% of listings are on the market forever?
Cambridge, Massachusetts, for one. All the listings that don't go in a week after multiple offers generally have some huge flaw. This from a friend who's trying to buy here. Other places in Eastern Mass, too. I'm sure there are other hot markets in other parts of the country.
what areas? I heard it from local agents, but then I am puzzled why 95% of listings are on the market forever?
The SF Bay Area has been like this all Summer in residential desirably communities...
The last home I listed for 719k and that would have been the highest price ever in the area... went on Friday and Friday night had an agent asking how soon her clients could get in... they were in 8 am Saturday...
Saturday and Sunday open house as scheduled and Monday the overbid at 769k accepted...
Market has cooled a little going into fall as far as time on the market... not prices.
In many communities it is like the bubble never happened...
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