Evaluating Properties - Comp Tip 1 - Geography
Running comparable sales and determining the end value of a property is truly an art and not a science. With that said, there certainly are some black and white areas to give yourself a baseline to judge the value from. The one I am going to focus on here is GEOGRAPHY. When searching for good comparable sales inside the cities, due to the high congestion, I am usually within 1/10th of a mile or closer. Going further than out than that risks bringing in too much variation in the evaluation. Certain areas of Philadelphia can have several hundred thousand dollar swings in price within just a few blocks. When I am in the suburbs I normally use 1/4 of a mile up to 1/2 of a mile depending on how spread out the properties are. If I can't find my data within those distance, my usual personal preference is to pass on the situation. I want to see quite a few solds within the data set I am looking at.
Ian Walsh
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