Do surrounding SFH influence price of selling your SFH?

[Austin Fox]

Hello BP,

So the discussion came up yesterday with my mother about her current reno. Bought a 300k foreclosure, so far 200k in reno added with still 50k-80k to go. We talked about possibly selling at some point and what the numbers would be. As numbers started to fly, I asked "What are the numbers for the surrounding houses?" and she replied, "Those houses don't matter".

.

1. Does she have a point? 
2. Do the surrounding homes have an influence? 
3. If they do, why?

[Logan Allec]

Is her house going to look like every other house in her neighborhood? If so then you'd better believe they matter.

Is her house a ginormous mansion when everything else is a 3 bed 2 bath or so different than surrounding properties that they're not really comparable? Maybe not so much then.

But generally yes comps matter. Ask any real estate agent.