Sometimes there is too much data!
In speaking with a seller client recently, he pointed to a recent sale in his neighborhood that I would categorize as an “outlier.” here were 8 other comparable properties recently sold in his neighborhood and this one sale sold for a 25% premium. I think you can see where this is going!
While this sale certainly had an impact on his price, it cannot be taken as a sand alone comparable. One must factor in the other sales to come up with both a median price and an average price (per square foot.) if the two of those are closely aligned, you have a pretty good indicator of value.
On the other hand, io recently received a market analysis form another broker with 24 comparable properties on it. While the other broker had median and average grids, they were not close in value. There was too much data – the broker failed to exercise good judgment in selection homes of similar styles and features.
So when someone throws’ data at you, is is too much or too little?
More about that next week.