Hi, everyone!
I’m trying to pull comps for a 2-2 single family. Apparently, there are no other 2-2s in the area that have sold in the past year. Should I expand my search to a 3-4 mile radius? Expand it to the past 2 years? Comps with 3-2s? Your help is appreciated! :help
In this market, you can’t count on a comp that sold more than six months ago - so going farther back is out.
And really, a 3bed is a entirely different category than yours, so it will be hard to make the value adjustments properly.
You’re best bet is to expand your radius a little. No more than 5 miles out, and make sure it’s a similar neighborhood and also try not to cross any major highways.
Hope that helps!
Thanks, stevie-o!
You could base it on the price per sqft, and then discount it some since they are not as desirable as 3/2 homes. Expand and/or lengthen the search criteria and see how the 2/2 performed against the 3/2 and the average day on market at that time. That is not a true indicator of course if you live in one of the hard hit markets.
Your best bet is to expand the radius, up to 5 miles. Include properties that are +/- 100-200 s.f. of the subject property.
Another thing to possibly consider is that if have older comps and you know that the type of properties you are looking at have declined (or appreciated, you never know!) by a certain percentage over a given timeframe, then you can deduce the fair market value.