Calculations off previous sales?

[Shane M]

How heavily do you weigh previous sale prices when looking at a property in its current market? I guess you would need to look at the context of the sale and even then there may have been other things happening that you weren't aware of. So is it best to just ignore it and just look at comps?

I am looking at a banked own property for 57K, I'm looking at 2 comps that have sold for 50 and 54 as well as 3-4 for 90-110 in the same time frame. I guess the key would be to go look at these home to see their condition. Is it likely that other investors have scooped those properties up intending to resell them at the retail rate? More due diligence is required for sure.

In regards to my question, this home sold for 75K in 2004 and according to the graphical market information from the comp websites like cybehomes and eppraisal, the market was at the same place in this area in 2004 as it is now (which I thought was odd anyway). Eppraisel evaluates the property at 88K as being medium price, 75K on the low end (although I'm not sure how accurate that is either). There are currently homes priced at 119K but I doubt they will sell.

Thanks!