Just want to have accurate comps. Is a year too far back?
60 days...although by the time you execute most deals based on these comps, the first 30 days are no longer within that 60 day window. So, I use the first 30 days to show a trend (if any), and the last 30 days when analyzing to set comps...with the understanding that there will be an added 30 days to those last 30 days that will make up my ultimate 60 days.
I always try to look at least a year back. This will also help inform you if the area in general is decreasing in value. Even look at the comps from 2 years ago, because you might not want to buy in what is considered the peak of the neighborhood's value.
I also look back at the history of the property you are looking at if you can find the info. Was it sold for way less just a couple of years ago? Did the last buyer end up buying it at the height of the market? I think this will give you clue as to how you offer would be received.
Thanks guys. I didn't realize that comps are changing on a 30-to-30 day basis. Wow..
it depends on what your market is like and the comps available. Ideally you want comps within the lay tree months to et an accurate value, but thats not always possible. If a market is stagnant I think 6 months is good, one year if there aren't any other comps.
A lot will depend in the population as well. For rural properties oubisually have to go back a year. For urban properties here months may be sufficient.
In Philly I use .2 miles and 6 months for sold comps
I look last 6 months within the same neighborhoods.
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