Is That a Comparable?
Or Your Competition?
It's a fact - some homes are comparables, and some are competition. They are not necessarily the same.
And depending on whether you are a buyer or a seller, and perhaps an agent, you will likely view these differently. And might not even consider them.
Pricing is commonly based on comparables that have sold recently, generally within a fairly narrow geographic area, in the same complex or in that very building, depending on the market and availability of sold inventory.
And as agents we focus on helping sellers figure out a listing price based on the comparables, which are typically in a fairly limited area.
Sellers think their competition is the comparables.
A handful of properties that may or may not compare favorably, in their mind, to their own home. Which, of course, is "special."
It's a view they have that just might be exacerbated by our own CMA's that focus on comps, NOT the competition.
Hah. Buyers, in many cases, are not looking just at comparables.
Unless they want to be in a particular building, or a certain complex. Their range of searching is far more likely to be possibly dozens of homes, or more - different styles, size, price ranges and views. Homes that are not just comparable to the seller's home but within some defined price range they are comfortable with. And likely not just in the seller's neighborhood.
What if you picked a range of, say, $50K in the area of your listing? That's more likely to be the competition for your seller's, unless the buyers are persnickety and have a "must have" list of criteria that would choke an ox. And which places their wish into the realm of "I'm sorry but that does not exist for the price you want to pay."
Mr. and Mrs. Seller - buyers are NOT just looking at homes comparable to yours.
They are looking at your competition. It's just the reality.