Question about comps

When you look at comps do you know how many months back encompass the range you are allowed to consider?
What if the comps are limits for your exact zip and school district? Can you go further back than the normal range OR look at neighboring school district in same town ?

Re: Question about comps

Ideally comps are 3-6 months but if there are limited sales or nothing really comparable appraisers can go back a year. I think though that they really only do this if there is a reason, like you have a 4 bedroom and all sales in the area are 3 bedroom or something. Also depends on the bank, some are stricter than others.

Re: Question about comps

We just had a realtor here. I believe she said the comps are up to 6 months back. We are in Smithtown and she used houses in the town but different schools. But they were all Smithtown schools. So none of the come w ere say commack schools.

Re: Question about comps

You really can't go back more than 6 months, and when it comes to appraisals, many banks won't let the appraisers go back more than 3 or 4 months now. The more recent, the better, especially now that the market is shifting a bit.

As far as area - School district is more important than town. So it has to be the same school district. Ideally it's both -- So if you are in Lynbrook, E. Rockaway schools, houses that are the same are the comps you want to use. Same neighborhood is best. Most banks want within a 1 mile radius, and I usually try to stay on the same side of a major road. So for example, if I am pulling comps in N. Bellmore, I usually try to stay above Jerusalem Ave. if I am looking for a house that is located north of Jerusalem (even though south of Jerusalem is the same school district and maybe less than a mile away).

I will usually pull all houses sold recently in the school district so we get a full view of the market, but then hone into a few comps in the same neighborhood, similar size/style, that have sold within the past few months to review in depth with sellers.

An appraiser wouldn't go back a year if your house is a 4 bedroom and all other homes sold recently are 3 bedrooms. They will just make an adjustment in value for the extra bedroom. Homes are unique, so even comps aren't identical in size, features... Appraisers will adjust up or down for lot size, square footage, number of rooms, garage, basement, etc.

Everything I am saying is for a suburban, well-developed area like Long Island. In a more rural area, the geographic boundaries or time limitations would be different.

Re: Question about comps

Message edited 7/22/2013 11:23:03 AM.