Using "Pending" Comps in Analysis

[Chris Feltus]

How strong would you weigh a comp that is marked as pending in your analysis?

For instance, lets say your subject property is a 3/2/2 1,500 sq ft and you are looking for retail-flip sold comps within .5 radius of the subject property, within 6 months, similar house style, sq footage etc. Generally, you need at least 3 solid sold comps to determine the subject properties ARV.

You find 2 solid sold comps, and 1 pending

1. Sold- 3/2/2 1450 sq ft $120,000
2. Sold- 3/2/2 1520 sq ft $124,000
3. PENDING- 3/2/2 1500 sq ft $121,000

Would the pending comp be able to count as a third sold comp in this scenario? From what I gather, the vast majority of the time a house goes pending its highly likely it will be finalized.

Thanks for your feedback

[Matt Jankowski]

The biggest problem with looking at a Pending comp is that you don't have the Sold price.

If $121k is the list price, it could be under contract for $90k; you just don't know.

You have a comp that MAY close for a price you don't know. Not any more useful than the Active comps.