Question About Analyzing For Sale By Owner Properties

[Ashley Cast]

Hello BP Members,

I have a question about analyzing for sale by owner properties.

When it comes to the comps do you only consider properties that are over what the owner is asking? Or do you consider all properties that are similar bed, bath, year, SqFt, and in good condition no matter if the price is lower than what the owner is asking?

I have found a few for sale by owner properties that are asking more than what the area is selling at and are in the need of repair.

[JD Martin]

Forget about what the owner is asking. This is often fairy-tale land figures. Approach comps the way a (good) appraiser would, which is comparing SF, location, condition, amenities, age of home, utilization, etc.