When is a comp, NOT a comp?
There are several instances where this may be the case, the most obvious being Non-Arm’s Length Transactions. But new construction and of course the neighborhood outliers – you know that neighbor who has been doing construction and adding on to their home for 15 years, could also be considered NON-Comparable for the typical Appraisal.
Is a Flip a Comp?
Short answer, sometimes… perhaps a new job required a relocation, maybe a new addition to the family means more space is needed, but more often than not, we are dealing with a Disrepair, Foreclosure or perhaps a Divorce.
In these cases, the home may be sold at a discount and for the right buyer, it could be the bargain of a lifetime or it could be an investor looking to turn a profit. In the latter case, the home is usually repaired quickly and “Flipped” within months or if it is a handyman looking to make money flipping homes and is doing the work themselves, it could take significantly longer to flip.
Profet.ai Integrates Flip Identification
Luckily, Profet.ai will automatically identify assumed Flipped properties for you, saving you the time and trouble trying to identify them yourself.
Profet.ai has built-in technology to review the history of every property in our database as it is being passed through the search results. Profet.ai looks at prior listings, as well as the transaction history from Public Records.
Profet.ai is trained to look at every listed property to find prior sales activity within a 24-month period. This would mean if a property transferred, whether it be a listed sale, FSBO or Auction, if there was a recorded transaction, Profet.ai will “Flag” it as Flipped.
Thanks to our extensive database of listing history, along with the public record history, not only does Profet.ai Flag them, but also provides the evidence, as well as prior listing details and photos whenever available.
Profet.ai’s Flip Identification can save you time and possible avoid questions during the review process, because you will be able to easily show why a comp was or was not used in your appraisal.
Please do not hesitate to contact us with any questions you may have.