If you are the seller, you want high. On the other hand, if you are the buyer, you want low.
When sellers are discussing a listing price they very often cite the house down the street that sold for "X" dollars last month. They do not need an analysis because they just know the house sold, it is in their neighborhood and so that is their price.
When buyers consider an offer price they may want to use the foreclosure down the street that sold at a huge discount.
The problem here is neither party wants to use the best comparable proeprties. This is where their real estate agent will have to show them the "good" comps.
Good comparable properties serve as a reality check. Good comps include a couple of key characteristics.
- Physical traits. Close proximity, similar qualities like age, square footage, materials similar such as wood frame or concrete, same bedroom count, garage size, similar views, etc.
- Circumstances of sale. Often called arms length transactions, these are sales where there is no special circumstances or financing. No distressed sale, no special relationships (selling to son or daughter), no liquidation quick sales, etc.
Ready to buy or sell your Brevard County, Florida home? Call me at 321-693-3850 if I can help in any way!