“Hi Gary… We’re planning to sell our home and would like to have you list it, so please call us at (858)XXX-XXXX. Quick question: Our model in our housing tract in Carmel Valley has been selling for $1,000,000 to $1,100,000. Now one just like ours sold for $950,000. Do you think our property values have dropped?”
Answer:
Fortunately, one “comp” (sale of a similar property), be it high or low, does not by itself determine the value of nearby homes. Appraisers are required to use at least 3 comps, and I try to use more than that.
After all, there could be extenuating circumstances in any given sale. Perhaps the seller was in financial trouble or had a bad agent. Or maybe the house was just a dump! On the other hand, perhaps the buyer got too excited and overpaid, or paid a premium to live next to family.
