Updated over 14 years ago on . Most recent reply
Pulling comps the right way
I'm a new realtor but I always thought that to pull solid comps on a subject property, you only looked at similar properties that had been sold or closed within the last 60 to 90 days, using a half-mile or so radius. Well, that's what I've been doing for a couple of probate properties. I asked my managing broker to check my work just to be sure, and he used not only sold but active, pending, price changed, etc. At that point, i just knew I'd have to find someone else to check my work.
Am I right on this?
Most Popular Reply
Jerrold:
IMO your broker is giving you a broader sample to look at. I think he lead you in the right direction. I do believe that pulling comps based on what is sold is the best way to do it. But pulling comps and formulating ARVs is really more art than science.
The active listings will show you the current competition on the market. If you want a quick sale then you know you will have to come in at the lower end of these properties no matter what the sold comps were. You can also look at the specs of those houses and compare to your subject. Price changes can let you know the activity in the retail market. If something is priced too high then that criteria will give you an idea of how the market is valuing properties. There's really no "one way" to pull comps.
But I think your broker did you a favor. And of course you can still get other Realtors to check your work even after your broker has.