With real estate, properties that are deemed to be comparable are likely to impact you, whether they are currently on the market or are recent sales. They will show up on the MLS and numerous websites, and likely will influence potential offers. Also, prospective Buyers are likely to visit nearby properties still for sale with similar characteristics within the price range.
Comparable properties also will factor into an appraisal of the value, which usually is ordered by a lender as a part of a mortgage loan application. Cash purchasers sometimes arrange appraisals as well, to make sure that the purchase price appropriately reflects the market value.
For those reasons, it pays to analyze them. If there are some recent sales at premium prices, your listing should take them into account. If there are low sales figures nearby, you may be able to find out more information to distinguish them so they are not compared to your unit. For example, foreclosures, short sales, and run down units sold for the land or for a complete interior remodeling may have an artificially low price – and one that has nothing to do with a unit that is in move-in condition.
To an extent, taxes and assessments are other elements to consider. They usually are presented on the listing sheets, and often are considered by potential buyers in reviewing the economics of potential properties. Keep in mind that the taxes and assessments can vary for apparently similar properties.
Finally, the relative strength of the property can come into consideration. Are the building components in good shape, or are they worn and in need of replacement? Also, if there is a Homeowner Association, is it well-run and well-funded? Buildings that are in good condition can command better prices relative to those that require some work.
As a seller, taking these factors into consideration can help you price the property correctly, and thereby avoid a long time on the market. If you are not sure about their impact, call us today.