Subscribe to Answers
If this sale is now recorded and part of the statistical data, data which an appraiser will use, it can only be good news for the SELLER.
However, for the agents of existing sellers, there may be a "RAISE THE PRICE" argument about to ensue.
Now, be aware, an appraiser WILL call the listing agent for an explanation regarding the sold price. Hopefully the listing agent makes no mention of gold plated toilets or professional grade kitchen. Everyone, except buyers, wants it attributed to market latency.
White Plains, NY
Let's just say it sounds like better news for sellers than someone trying to buy a place!
Nina Hollander, Broker
As far as I'm concerned this can only be good for other units in the building as it sets a new benchmark for market value. But you would need to find out if there were any special circumstances not applicable to neighbors that caused the high value.
Sterling Heights, MI
Without reading the other answers I would have to say if only one it can be throw out of the mix of comparables. If it starts a trend good for the sellers tough on the buyers. Mark
Bad if your seller now expects the same! Otherwise probably not much impact unless it proves to be the beginning of a trend.
Shows life...supply and demand and forward movement...Now to repeat it
Maybe a bit of both. Depends on why it sold for so much more, what the terms were, etc. We sold a building to a tenant and tacked on a fairly good amount that he owed the landlord for something else . . . that sale didn't reflect a fair market price but it was still a sale. If it was just one condo in an area where there are many more, maybe not much impact. I'm sure an appraiser will want to know the 'why'.
Great question and answers.
Nice when the demand is high.
I would think this is great for your listings unless they are way overpriced.
It is what it is,,,until it isn't. More information is necessary for me. Special building. Special unit. Special buyer. All kinds of different factors can and often do come into play in these types of situtations.
If the sale is comparable to your listing and you go to contract within a relatively short time period, it can be good or bad.
If your listing sells for less, the higher comp is a guarantee that the mortgage should move forward.
Of course, if the comp is lower than your sale, watch out.
The most important thing to do to safeguard from these issues, is to know how to appraise. Educate your seller about the affects of the appraisal and price the property in line to begin with.
I would venture to guess that if you follow the money you'll soon find it leading to a desperate investor who likely owns 9 other units there. This tactic, if used properly, will feed the market values to a new profitable margin which should benefit all listings in that location. It's what we used to call (f)risky business and not for the faint of heart!
Probably a good thing for your listings as it raises all the comps values.
Savitri Richardson - well, market is what it is! It will go up and down.
We have to work in EVERY market!
It could be good, but depending on why the value for the property was so high. Did the buyer need to close on the home in a short timeframe? Did the home offer upgrades not found in other condo's?