Using a private sale as a comp?

[Chandler]

If there's a good private sale that offers support, I wouldn't necessarily use it, but I would mention the sale in the addendum and if I could not verify condition or transaction details I'd mention that as well.

 

[Tim The Enchanter]

If there's a good private sale that offers support, I wouldn't necessarily use it, but I would mention the sale in the addendum and if I could not verify condition or transaction details I'd mention that as well.

Addendum it.

Later you can tell them to RTFA, if you must.

 

[Alsie35]

Even private sales often use realtors to facilitate the sale or even to find the parties. If so, find out who that realtor was and ask them questions about the condition/features of the home.

 

[Fernando]

I would check prior history of the sale. If the comp sold few years ago, you have access to look at interior photos.
Even if older, you can tell if house has been expanded if different from third party sources.
Then I would check the permits. If permits were taken out not long ago for remodeling, then it's good condition.
If you can't get any info on comp, use it as Comp #4 and base on condition on outside, assume similar inside.
Use Comp #4 as support.
Hope that helps from the whacky mind of Fernando.

 

[Terrel L. Shields]

Assuming that I am able to obtain the information can I even use these sales since they were not offered on the open market.

I will look at a 40 year old manufactured home, rural area REO. There isn't one single comp in the MLS similar to it. There are a lot of sales though, so it will be shoe leather time, but you also can look at the tax card, the deed and the mortgage. That tells you the financing. (Most of my comps will be cash sales less that $25k.) But sometimes you can "get lucky" and find them by simply typing in the address on Google. You may get an older listing in Realtor.com, Zillow, etc. And do make sure you look at the withdrawn and expired in the MLS as it might have been on the market in the past few years and simply had someone offer for it after it was withdrawn. I don't buy the "exposure" argument in this market because anyone foolish enough to put out a FSBO sign here will probably get 20 agents and 30 individuals call or text you.

 

[GWISC]

If you knew it was for sale (Zillow or FSBO on Facebook), then there should be some phone number or contact info to get ahold of. Just do some digging.

You could always see who the title company was if there are only a few in your area. Often they have some info at least on the transaction and if there are any concessions. They may even let you know which lender extended the loan for the property. If a loan was used and the lender is good about answering questions, they may tell you who appraised it. Call the appraiser if it is ok with the lender. I call some of my clients on private sales to see if they have any info on them from time to time. I also look at the deed and will see if there is any contact info for either party.

I have called sellers out of the blue when I find contact info (for private sales anyway). The last one was an attorney who sold his house in a private transaction. I explained who I was and what I was doing. He specialized in real estate and so was happy to answer all of my questions. Turned out to be a great comparable. This also gives you an edge over your competition as you now have an expanded database of sales beyond the MLS. It is also a good idea to talk with other appraisers in your area and arrange to swap sales that could not be found in the MLS as they are private. We all appraise properties that are private sales from time to time. It is beneficial to all appraisers to share these private sales comps with one another (with permission from the client of course).

 

[alebrewer]

You could always see who the title company was if there are only a few in your area. Often they have some info at least on the transaction and if there are any concessions. They may even let you know which lender extended the loan for the property. If a loan was used and the lender is good about answering questions, they may tell you who appraised it. Call the appraiser if it is ok with the lender. I call some of my clients on private sales to see if they have any info on them from time to time. I also look at the deed and will see if there is any contact info for either party.

I was under the impression that title companies were under confidentiality constraints? At least that is the case in TX. And remember - unless it's in MLS, even the sales price is not recorded in public records in non-disclosure states. Which leaves the HUD/CD as the only bona fide verification source for sales price in non-disclosure states.

 

[Mark K]

I wouldn't hesitate to use them if you can discover enough info about them to feel reasonably comfortable. I certainly wouldn't exclude two recent sales in the same gated subdivision.

Around here, less than 50% of the sales are going thru the MLS. Word of mouth or FSBO will sell most any decent house in a few days. Using only MLS sales misses a lot of comparable data.

 

[TMG]

If they are relevant sales, then they are relevant sales. Condition, etc could be determined by knocking on the door. I have a photo ID badge I wear to give me some cred. You got a 50/50 chance. They may not want to talk, or they might talk your ear off.

 

[Terrel L. Shields]

n public records in non-disclosure states.

Problematic in non-disclosure states since you can talk to the buyer or seller and likely get the sales price, but you can't confirm it. In a disclosure state you know the price, and confirm it through interview or whatever.