When Doing a Comp, Do you Analyze Foreclosures Too?

[Bob Asad]

Let's say there's 3 properties in a 1-mile radius with 5b/3b, but one is a foreclosure and the other 2 are regular conventional sales.

If you're doing a comp for your subject (4th) property, do you have to take the foreclosure one into consideration?

Ex. Property 1 and 2 sold for $750k, but the foreclosure (3rd) sold for $500k

As you can see, the foreclosure heavily skews the comp.