Total real estate investment sales in Singapore contracted substantially in Q3 2018 as fresh property cooling measures weighed on the residential property
How do you come up with real estate recent sales comparables. Are there any online resources to create them?
Alot would depend upon how accessible your local public records are. With some municipalities you can search their assessors database by recent sales and then narrow it by number of bedrooms, baths, living area, lot size etc. Then it also takes some knowledge of the sales themselves. We’re they arms length deals, we’re they for sale by owner, what was the condition inside the home compared to other properties and your target property in particular.
AVM’s (Automated Valuation Mechanisms) simply select the sales within a specified time frame and geographic proximity then take an average of the sales price vs. living area to come up with an average cost per square foot. Then when you take your target property it simply tells you based upon the average, the target property being so many square feet results in a suggested value.
AVM’s can’t account for the intangibles; views, mature plantings, how the properties are situated on their lot, that junky house next door or the pig farm on the next block. This is where a real estate professional uses their judgement of these extra areas to choose better comparables and more evenly compare the properties. Like how if the subject property has 4 bedrooms but one is tiny and doesn’t have a closet while the public record may say 4 bedrooms a buyer might expect 4 equal or similar sized rooms. In this case it might be better to use 3 bedroom comps and count the 4th bedroom as a bonus room. Or if the comparable all have lovely yards but the subject property has only blacktop surrounding it then a financial adjustment needs to be made based upon market expectations. Is that a plus or negative to the value.
Hope this helps