There comes a time in a realtor’s career when the standard CMA just does not suffice. In an area where homes are very similar in most attributes and can easily compare then a relative value applies. In a situation where it is difficult to compare and a property is more of a contrast to those around it then a absolute value applies.
As a fiduciary to either buyer or seller we are responsible to explore the differences in value and how the value applies…relatively or absolutely.
I have been on appointments where I can honestly say that there were no comps. It is desirable in location and condition however the value is questionable when compared. The price is then determined through a variety of sources and not just active and sold properties. When there is a view or a unique setting within a complex or a style of architecture or some other outstanding feature that sets the property apart…absolute value prevails. It is the property that a buyer MUST have regardless of its comparables and price it not even considered. This buyer is most likely to have cash so an appraisal is not a factor.
The beautiful Hudson Valley has a multitude of properties with absolute value specifically when a Hudson River view is present. This may be the case for other parts of the country as well. Be an observer, a listener, have an objective perspective and analyze from many different angles. Use resources wisely, the client is delighted and world class service is delivered.