How exactly do "comps" work? (Buffalo: assessor, houses)

[csteen85]

We're considering putting an offer in on a house and are waiting to discuss comps with our Realtor tomorrow morning.

I tried to gather some idea of comps online myself and found a couple of houses that look like the same type of house with same layout in the same area as the house we're looking at that sold for about $100k above asking on the house we're interested in - however, the house we're interested in is DRASTICALLY outdated.

We're expecting to have to re-paint every wall and re-finish every floor, in addition to the Kitchen and all bathrooms needing to be updated at some point.

My question is, did the seller already take this into consideration in pricing the house about $90-$100k below what more updated versions of the same house in the same location sold for in the past 12 months? Or is there still room for negotiation for us to get the price down a little?

When I say the house is outdated, I mean pretty much everything is original. Windows, finishes, flooring, etc - all original on a house built in 1955.

[TomMoser]

From what you are describing, it does sound like the seller already took the condition of the home into consideration.

[twingles]

Sounds like they took it into consideration. That doesn't mean they won't negotiate, but don't expect another $100K price drop.

[ocngypz]

In some circles an all original 1955 home is quite popular!

[BuffaloTransplant]

I am sure Tom can answer this, but upstate a "comp" is when a realtor goes out and finds 3 or more homes which have recently sold in your area ( like the same school district or town) which are the same kind of home: like if it was a 3 BR, 1 Ba, built 1955, gas heat, same type of roofing and siding and sq. footage and garages.

You need to find out if the other was all updated . I saw one home on our road totally redone being sold at a really high price and knew it was way low on taxes -- yep, after it sold, the poor couple had much higher taxes -- it had not been reassessed in 25 years. The guy who redid it refused to let the assessor look.

If nothing has been done, the realtor should know if the "comps" were updated. If they were, you should ask for a lower price. But, since it wasn't redone, it may keep your prices down. When you redo it, they will go up.

[csteen85]

Thank you, BuffaloTransplant. This sounds pretty much like what I was thinking. I was just curious.

[garvey103]

a comp is something my casino host gives me to make me feel less like a loser