Comparable Sales - Only old properties sold in the neighborhood

2 Replies

Dear BP,

I had a realtor run CMA on one of the SFH deals I am looking at. She ran the analysis and came up with an average price/sf. There are four properties included in the analysis. However, all these four properties sold are older houses (not remodeled). Is this CMA an accurate measure of the ARV of subject property?

Many Thanks!

Sam

@Sam Pant

Did you ask the Realtor for comps on the current condition of this property or did you ask for a potential after repair value?

If these are the only comps available in the area and you improve the home, you have to consider what value an appraiser might put on those improvements.

I suggest asking the Realtor to revisit the CMA to see if there are any comps that are able to support a higher value and are updated with features you intend to offer.