Lack of Comparable Sales

“THERE HAVE BEEN VERY FEW HOME SALES IN OUR AREA. HOW CAN WE SET OUR LIST PRICE IF WE DON’T HAVE ANY COMPARABLE SALES TO GO BY? ALSO, TO COMPLICATE THINGS, WE’VE MADE A LOT OF UPGRADES.”

 

This is a situation in which having an experienced real estate agent who knows your area is vital. Not having any recent sales in your neighborhood—and the fact that your home has undergone a lot of upgrades—does provide a few challenges, but a good real estate agent will be able to help you set a fair list price. The problem can be attacked from several different angles. To arrive at an initial list price with very few “comps” to go by, your agent will consider a wide range of factors including your location, current market conditions, your square footage, the year your home was built, distance to services, and your home’s overall condition. In terms of the upgrades you’ve made to your home, although any upgrades will increase its value, you probably won’t get a dollar-for-dollar return on your investment on those particular projects. Your agent will certainly know this and take it into account when determining a good list price. In the end, keep in mind that looking at comparable sales is indeed helpful in setting your list price, but it’s not the end-all be-all. Rather, an agent’s experience and knowledge is much more important and useful. ∆

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