If you’ve come across a property in Privy with a sale price of several million dollars in a low-priced neighborhood, it might seem confusing. This usually occurs due to "bulk" deals or unique investor situations. Let’s break down why this happens and how to interpret the data effectively.
Understanding Bulk Deals
A bulk deal is when multiple properties are sold together as a package.
In such cases, the recorded sale price reflects the entire package's value, not the individual property’s worth.
This can lead to an unusually high price appearing for a property in a low-priced area.
Investor Comparables and Million Dollar Sales
Sometimes, you may see a flagged deal where the only investor comparable has a sale price of over a million dollars.
This happens when:
A high-value property was included in the comparable data.
The sale was part of a bulk deal or unique investor transaction, skewing the comparable data.
What’s Actually Happening?
These situations occur due to the nature of how properties are grouped and sold in certain transactions.
While they may appear as outliers, they’re reflective of real market activities involving investors or bulk sales.
How to Handle These Situations
Be cautious when evaluating comparables with unusually high prices in low-priced neighborhoods.
Look for additional data points or comps that better align with the neighborhood’s typical property values.
Use Privy’s tools, like filtering investor activity or adjusting search parameters, to refine your analysis.
Watch the video tutorial below for a deeper dive into understanding these scenarios.