It seems like more times then not when I’m looking up comps for a property, the results of my searches leave me with nothing solid. I had one particular scenario come up the other day where the house was larger then anything else in the neighborhood. This had me scratching my head for a bit because i wasn’t really sure how to properly put a price on this home. Let me break it down for you and then give you the solution that came up in my mastermind group.
A 4 bedroom, 2 bath house sitting in a neighborhood that has only 3/1 and 2/1 houses. Only a dozen sold house in the past year as well.
Questions in my mind
- Can I use the 3/1 comps and adjust them to a 4/2?
- Do I even want to bid on a house that is the largest in the area?
What to do
In this market there clearly isn’t a big need for 4 bedrooms and 2 bath houses. If there were, I’d find better comps. To me this also means that buyers will not pay a premium for such a house and I want to price it to sell quickly.
To get my ARV, I decided to comp it out as a 3/1. If I can get this home and price it at 3/1 prices there is no question it will sell, and QUICKLY!
I have always heard it’s dangerous to get the odd-ball house on the block, or the biggest house on the street. With that said, it’s better to be a bit more careful with how much you are offering.
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I understand the caution when trying to sell a bus in a SUV market. If the price is right, it could make a decent rental through.
How about selling an SUV in a bus market?