Kim Mullan Blog
The Trouble With Comps
The trouble with comps…
They tell the truth.
What are buyers in today’s market conditions willing to pay for properties similar to yours?
It doesn’t matter if your buyer is from our city, another city or from the North Pole.
They want to see the "comps"...
the data showing what was paid most recently for similar type homes as well as what expired becuase it indicates what valuations the market rejected.
This is especially true if they are not from the city and aren't familiar with our market!
They don’t want to overpay or over-improve a property that they may have to sell in the future.
Especially if they are relocating to our city…because they have already been uprooted for one reason or another and they know it’s possible to be in that position again.
What that means to you as a Seller...
If you are having showings but potential buyers aren’t making offers or they are making low offers it does not mean they can’t afford your property.
It means they are taking into consideration what a property like yours, fully maximized with popular/current finishes and upgraded mechanical/structural systems can really sell for in the future.
Then they are working backwards and considering the costs to get your property into that condition without over-improving the property for it’s lot, layout and location.
If the numbers work they are writing offers. If the numbers don’t work they are walking away.
What other properties are asking doesn't carry a lot of weight compared to the final price a buyer was actually willing to pay for them.
Only when money changes hands and a property is sold firm are we looking at market value.
Today’s buyers are more educated and well-informed.
They demand more information and they want to protect their future investment as much as possible by reducing potential risk.
And rest assured…they want to see the Comps.