Princeton Town Topics – Let’s Talk Real Estate – April 19, 2023
THE LIMITATIONS OF PAST COMPARABLES IN A HOT REAL ESTATE MARKET
In a hot real estate market, relying solely on past comparables to make offers may not be accurate. Recently sold properties that are similar enough to serve as accurate comparables may be challenging to find due to the market’s fast pace, bidding wars, and quick sales. Additionally, the market conditions in the past may be different from the current conditions, making past comparables less reliable.
To make informed pricing decisions in a hot market, it’s essential to work with a knowledgeable real estate agent who has access to the most up-to-date information on recently sold properties and active listings. Agents can help buyers and sellers navigate the challenges of a hot market by identifying accurate comparables, analyzing data, and making adjustments for any differences between properties.
Flexibility and adaptability are also crucial for buyers and sellers in a hot market. Buyers may need to adjust their expectations and make competitive offers quickly, while sellers may need to adjust their pricing strategies based on the competition. While past comparables are important tools, they may have limitations in a hot market, and working with an experienced agent can help navigate these challenges.
