Can i use a comp that is a mile away but falls into another town?

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Can i use a comp that is a mile away but falls into another town?

Joseph Ayala
New Britain, CT · Member since 2019 · 33 posts · 3 votes

Can I use comps that are close by but fall into another town ? The comp is only about

A mile away but it’s on the next town over

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Angelo Mart
Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
7y
Great question as I am a State Certified Appraiser. 90 % of cases it is NOT valid. But It is valid if it is Identical, no other Similar Sales, Suburb or Rural area and attends the SAME school district. I appraised a mansion in my town that was 5,000 SF. No other sales even close to that in town. I found one sale at 4,000 SF in my town and adjusted upwards. I found one sale in neighboring town that was identical to my house. The neighboring town is similar and Attends the same School district. However, the neighboring town is superior to my town with a higher overall Median Sale Price. Therefore, that sale was adjusted DOWNWARDS for being in superior market. A lot of variables go into selecting "COMPS" most comps from realtors are INVALID. It all depends on the Subject Property
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  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    Ideally you want to use comps within .5 mile of the subject property and purchased within the last 6 months. 

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  • Joseph Ayala
    OP
    New Britain, CT · Member since 2019 · 33 posts · 3 votes
    7y

    @Brian Gerlach but it’s only 1 mile away , but the only thing it’s a different town. Would that work ?

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    7y

    It's not in the same town, it's not valid

    It could be across the street, and it still wouldn't be valid

    0Reply
  • Angelo Mart
    Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
    7y
    Great question as I am a State Certified Appraiser. 90 % of cases it is NOT valid. But It is valid if it is Identical, no other Similar Sales, Suburb or Rural area and attends the SAME school district. I appraised a mansion in my town that was 5,000 SF. No other sales even close to that in town. I found one sale at 4,000 SF in my town and adjusted upwards. I found one sale in neighboring town that was identical to my house. The neighboring town is similar and Attends the same School district. However, the neighboring town is superior to my town with a higher overall Median Sale Price. Therefore, that sale was adjusted DOWNWARDS for being in superior market. A lot of variables go into selecting "COMPS" most comps from realtors are INVALID. It all depends on the Subject Property
    2Reply
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