Investor · Tri State Area · Member since 2018 · 107 posts · 24 votes
How do you formulate an offer if you can not find anything sold in the area that even remotely matches the description of the home you are trying to purchase. I would hate to pay too much for something and have to do work on it and can not get my money back. Some of these homes are dilapidated and in remote areas with no recent sales. Any advise would be greatly appreciated.
Real Estate Agent · Atlanta · Member since 2018 · 137 posts · 69 votes
5y
How urban/suburban/rural is the area? If it's the middle of a city, then anything over a mile away might mean nothing regarding the subject property's value. If it's out in the middle of nowhere where neighbors are all mils away though, then using comps over a mile away would make perfect sense. Depends where on that scale your situation falls.
I regualarly use a 2+ mile radius to check comps for properties my clients are interested in for less densly-populated areas away from the city.
Investor · Tri State Area · Member since 2018 · 107 posts · 24 votes
5y
Its not what I would consider "remote" there are several properties next to it. Just no recent sales in that area in the last year that remotely match the property description and comparable sq ft.
Real Estate Agent · Atlanta · Member since 2018 · 137 posts · 69 votes
5y
@Derrick Gordon
Sounds like you might have to just make an educated guess to some extent. For example find recently sold properties with +/-1 bedroom and/or bathroom instead, and adjust from there. Property values get a little more subjective and will depend on what any individual buyer would be willing to pay, compared with more cookie cutter homes with plenty of similar comps all around, where it's much easier to just calculate what it's worth with little room for debate.
Investor · Tri State Area · Member since 2018 · 107 posts · 24 votes
5y
Its not what I would consider "remote" there are several properties next to it. Just no recent sales in that area in the last year that remotely match the property description and comparable sq ft.