Comps question

chicsub · January 2012

Our mortgage broker said that they look at comps within the past 6 months. We had one really bad sale (regular sale, agent owned, total low-ball listing that was equal to the last short sale in our neighborhood). We live in a townhouse subdivision surrounded by SFH neighborhoods, so our neighborhood is really the best for comps since the other townhomes are further away from the train, etc.

So what happens if there are no sales in the past 6 months in our neighborhood that are direct comps (there have been 2 bed sales, but no other 3 bed)? Would that last low-ball sale still be our comp even though it happened outside of the 6 month window b/c it's the only recent sale?

Gannon · January 2012

Typically lenders don't look beyond their own stated parameters (ie the 6 mons) if there are other properties to look at (even if they aren't an exact match). If they have a fair amount of sales in the area for the 6 month time frame, they will use those and make adjustments for size, location, number of bedrooms, condition etc. They will look in a wider area than your complex or immediate neighborhood. They use their own equations to adjust for differences.

HTH & GL

chicsub · January 2012

That would be good b/c the other townhomes in the surrounding area are faring better than our neighborhood, even though they are a year older and further from the train and have no yard.

chicagobride_07 · January 2012

I live in a large highrise in downtown Chicago. When we met with a realtor last Spring, we had two comps (identical units to ours in the same building)- both were short sales. In our specific situation, the realtor mentioned that these had now set the bar for all sales of that unit type in the building. So, basically, when we list (as a regular sale), it will be around the historical short sale price- this is now the new "normal" for us and everyone else trying to sell in the building. It sucks for us, but hopefully this isn't the case in every situation. We have alot of people holding onto their properties and renting them out because of this.

jenuine · January 2012

chicagobride_07:
I live in a large highrise in downtown Chicago. When we met with a realtor last Spring, we had two comps (identical units to ours in the same building)- both were short sales. In our specific situation, the realtor mentioned that these had now set the bar for all sales of that unit type in the building. So, basically, when we list (as a regular sale), it will be around the historical short sale price- this is now the new "normal" for us and everyone else trying to sell in the building. It sucks for us, but hopefully this isn't the case in every situation. We have alot of people holding onto their properties and renting them out because of this.

Same here. We had 2 short sales with the same specs as our home. Those were our regular sale (not short) comps.

Comps question

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