Updated over 18 years ago on . Most recent reply
Comps in a Downward market
Hello,
As I progress toward trying to work in wholesale business, working with pre-foreclosures and other motivated SFH sellers, I can see that there could be a problem finding good comps as the retail market goes down. Here in Minneapolis, prices are going down steadily, and it makes me unclear how one can really know for sure what the house is worth, which of course is essential when you are making an offer that you think is, say, 60-70% of the market value. I am worried that I might tie a house up, think it is 65% under the market value, but in reality be more like 85% of market value, and then be looking for buyers who are not interested in that deal. Would be a waste of time. Retail sales are very slow here like everywhere else. I am fairly certain of the current values of certain neighborhoods, and can access the solds in other areas, but am unsure of the values in other neighborhoods that I am not familiar with but might want to do a deal in. What do you suggest for finding comps in this market? I am thinking the comp websites might not be updated fast enough and have old information. Thanks, Mike