Does a Short Sale Count as a Comp?
In the comments section of Pricing Problems , Anonymous says:
Wow. I haven't heard that tired argument for quite some time. I thought that misguided thinking gave up the ghost in 2007.
There is some debate about this topic, no doubt. And every situation is different. In a normal market, one isolated distressed sale should not be considered a comp for an entire area. Doing so would be foolish.
But you also need to remember this is not a normal market.
In fact, foreclosures now account for 40% of all LA County sales. Are you arguing those distressed sales shouldn't "count" as comps?
Anonymous (if that is your real name), please enlighten us. I'm genuinely curious as to how you convinced yourself short sales, which are only approved when banks determine market value has been met (or did you think they just arbitrarily threw darts?), should be completely ignored as comparable sales.
"Retard, the one listed for 300,000 is a short sale. You can't compare the two."
Wow. I haven't heard that tired argument for quite some time. I thought that misguided thinking gave up the ghost in 2007.
There is some debate about this topic, no doubt. And every situation is different. In a normal market, one isolated distressed sale should not be considered a comp for an entire area. Doing so would be foolish.
But you also need to remember this is not a normal market.
In fact, foreclosures now account for 40% of all LA County sales. Are you arguing those distressed sales shouldn't "count" as comps?
Anonymous (if that is your real name), please enlighten us. I'm genuinely curious as to how you convinced yourself short sales, which are only approved when banks determine market value has been met (or did you think they just arbitrarily threw darts?), should be completely ignored as comparable sales.
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