The Trouble With Townhomes

[J Grant]

This is an example of an assignment that can first look easy ( a simple modest size townhouse ....) but turns out to be complex, due to lack of comps and recent sales that are problematical.

The 150k sale had seller motivations affecting price, yet it also does show market reaction, whatever the seller motivation was. Which creates the issue of reconciliation and lots of analysis of the market area and recent activity , apart from what RE agents say, since they always cheerlead the market. Maybe the subject is worth 160k, maybe 165k, maybe another $ amount. I doubt it is worth 150k due to that one lower price sale, ...but that is for the OP to figure out.

This is also an example why those who believe computer valuations can replace us- not so fast. A computer would heavily weight that last sale of the subject at 150k, for better or worse.

 

[J Grant]

This is an example of an assignment that can first look easy ( a simple modest size townhouse ....) but turns out to be complex, due to lack of comps and recent sales that are problematical.

The 150k sale had seller motivations affecting price, yet it also does show market reaction, whatever the seller motivation was. Which creates the issue of reconciliation and lotsof analysis of the market area and recent activity , apart from what RE agents say, since they always cheerlead the market. Maybe the subject is worth 160k, maybe 165k, maybe another $ amount. I doubt it is worth 150k due to that one lower price sale, ...but that is for the OP to figure out.

This is also an example why those who believe computer valuations can replace us- not so fast. A computer would heavily weight that last sale of the subject at 150k, for better or worse.

 

[Mark K]

After talking to a bunch of agents I am finding that it is recently stabilizing.

I hope you have actual data to support the agents' assertions of a stabilized market. The $150K sales price or a drop of about 10% since Dec. may be evidence its not yet stabilized.

If they're wrong, and in a falling market they often are, the $150K sale could be the most accurate number. The expression "catching a falling knife" comes to mind.