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A Lack Of Comps Isn't Necessarily
A Problem
“I KNOW
THAT COMPARATIVE SALES (COMPS) ARE IMPORTANT IN DETERMINING MY INITIAL
LIST PRICE, BUT HOW CAN I SET A GOOD PRICE IF THERE ARE NO RECENT HOME
SALES IN MY NEIGHBORHOOD?”
Many real estate agents
will tell you that there are always comps—just not always easy
comps. In an ideal world, a Comparative Market Analysis (CMA or comp)
will include homes within one mile (or even closer) that have sold in
the last month. However, such a scenario isn’t always the norm,
especially in a slow market. If there haven’t been any recent home sales
in your neighborhood, the problem can be attacked from several different
angles. Your real estate agent can take into account other factors
besides location and date of sale including market conditions, square
footage, recent upgrades, year built, distance to services, and a home’s
overall condition, among other factors. In some instances, the scope of
a CMA may need to be widened to include homes that are further away and
that were sold longer ago. Although expanding the search area and
selling timeframe may not always be 100% accurate, you should keep in
mind that your real estate agent will take into consideration many
different factors in order to arrive at a solid list price for your
home. ∆
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