The House Next Door... (Corona, CA)
I have a 1,722 SF 3/2 Single Family Home that we were renting for a number of years and now we are trying to sell. Getting comps is a bit difficult because it's a neighborhood where no two houses are exactly alike. But a fair Market Value estimate would be AT LEAST $375k or $400k. The problem is that the house next door (which is 500 SF bigger and with newer upgrades - countertops, appliances, etc.), was purchased in January at a foreclosure auction for $238k, and is now being flipped for $330k!! That house is EASILY worth at LEAST $425k if not closer to $475k. I really have no idea why these guys are selling it at such a low price (I'm pretty sure that in this market, it would even move quickly at $400k). But the bigger problem for us is that suddenly we have a ridiculously low comp right next door that beat us on the market! Will real estate agents actually take this comp into serious consideration??? It's a joke... I'd appreciate any advice from people that have experience with this. Or suggestions of anything we can do to mitigate the situation.
Also, when a house is appraised, is it done so based SOLELY on the value of the individual property or do they take neighborhood comps into consideration as well??
Thanks in advance!