I’m pleased to have Pennsylvania Certified Appraiser, Laurie Allison, alongside me today to have her apply her expertise to a question that has equal relevance to both buyers and sellers: What constitutes a comparable? Another way of asking this question is, “How far back in time can you look when reviewing comparable sales?”
According to Laurie, the answer to this question is rooted in the type of loan being used. With an FHA loan, lenders are more restrictive and favor the most recent comps for your particular area; they typically need to be on par with homes sold in the last three to six months.
Generally speaking, you can reach back anywhere from three to 12 months when trying to determine a comparable price.
Because the volume of sales will rise with the emergence of the spring market, there will be a larger quantity of comparables to work with. The guideline, Laurie advises, is to pick a comparable price that is as close as possible to the home in question and include that in the report.
For more information on this topic or for any real estate-related questions you may have, please feel free to give me a call at 215-680-4652 or check us out on the web at SuburbLiving.com. We look forward to hearing from you!