Posted by AndyVA on August 25, 2003 at 19:52:25:
I checked out a property at Domania once. Real simple; they asked for the address, the purchase date, and the purchase price. It came back $10k higher than anything in the neighborhood, so I thought I’d research further.
I put in all the same info, but a purchase price of $1. Comp came back at $4. I tried with $800k purchase price. What do you know? Now it comps for $2mil. I’d say $2mil spread in a $30k neighborhood makes for innacurate comps.
They figure a percentage, then apply that to your purchase price and date. I’ll never visit that site again.