When Comparable Sales Don't Tell the Whole Story

TL;DR

• The nearest home sale is not always the best comparable. A nearby property can have a different lot, garage, floor plan or construction quality.
• Unique homes need broader valuation analysis. Custom homes, acreage properties and specialized garages may require older or more distant comparable sales.
• Unusual features do not automatically command large premiums. What matters is whether the market supports their added value.
• Pricing and appraisals serve different purposes. A comparative market analysis helps establish a listing strategy, while an independent appraisal supports a financing decision.

Imagine you're selling a home in Waddell.

It has four bedrooms, a detached workshop, an RV garage and nearly an acre of land.

The house across the street recently sold, but it sits on a typical subdivision lot with a standard two-car garage.

A home a few streets over is closer in square footage, but it has no workshop, no RV storage and a completely different outdoor setup.

Then you find another home several miles away that looks much more like yours.

Which sale should carry the most weight?

It may not be the one across the street.

That is where pricing an unusual property becomes more complicated than entering an address into a home-value calculator or averaging the last three neighborhood sales.

In parts of Goodyear, Buckeye, Waddell, Litchfield Park and Surprise, two homes can have nearly identical bedroom counts and living areas while appealing to different buyers.

The challenge isn't simply finding sales. It's finding sales that represent the same kind of buying decision.

1. A Comparable Home Should Compete for the Same Buyer

Comparable sales, commonly called comps, help establish what buyers have been willing to pay for similar properties.

But similarity extends beyond square footage and proximity.

Relevant characteristics may include:

• Lot size and characteristics
• Home design and construction quality
• Condition and improvements
• Garage configuration
• Property location and surroundings
• Functional features and utility
• Market conditions when each property sold

Fannie Mae's comparable-sales guidance emphasizes physical and legal property characteristics, relevant market areas and properties that compete for the same buyers.

Consider a hypothetical example.

A 2,800-square-foot house in Buckeye with a 45-foot-deep RV garage may have more in common with another RV-garage property several miles away than with a 2,850-square-foot home next door that has a conventional two-car garage.

The local subdivision sales still matter because they establish neighborhood market evidence. But they may not fully explain what buyers are willing to pay for specialized features.

Determining the best comparison can require looking beyond the nearest streets.

2. Litchfield Park Custom Homes Can Break the Typical Neighborhood Comparison

Litchfield Park offers a useful example because its housing includes properties with different ages, architectural styles, lot configurations and levels of customization.

Consider two hypothetical properties.

The first is a renovated custom home near the historic Wigwam area, with mature landscaping, a distinctive floor plan and an established lot.

The second is a newer, similarly sized production home in another nearby community.

Both may have four bedrooms and approximately 2,700 square feet.

That does not necessarily make them interchangeable.

A buyer seeking established landscaping and a distinctive custom-home setting may not evaluate the properties the same way as someone seeking newer construction and a standardized floor plan.

But there is a caution for sellers.

Distinctive does not automatically mean more valuable.

A customized floor plan may attract one buyer while limiting its appeal to another. Some improvements may command measurable premiums, while others may contribute less than their cost.

The challenge is finding evidence of how buyers have responded to comparable characteristics rather than assigning a premium simply because a property is unusual.

3. Waddell Acreage: A One-Acre Lot Isn't Just a Number

Larger-lot properties in Waddell and surrounding areas create another comparison problem.

Imagine two houses with similar interior space and approximately one-acre lots.

Property A has an accessible, relatively level parcel, a detached workshop and room for vehicle storage.

Property B has a different shape, drainage limitations, easements or existing improvements restricting its usable space.

The lot sizes might be almost identical, but the properties offer different utility.

This connects with the Downs RE Usable Lot Test. The valuation question goes a step further.

It asks not just whether land is useful, but whether market evidence supports a financial premium for that utility.

A buyer needing a workshop or vehicle storage may place substantial personal value on the features.

Someone without those requirements may not.

That difference can affect the buyer pool and the appropriate comparable properties.

When evaluating acreage, distinguish between the land's dimensions, its permitted and practical uses, and the market evidence supporting the price.

4. Buckeye RV Garages Present a Different Challenge

RV garages are useful examples because specialized storage is not represented by standard garage counts.

Imagine three homes:

• Home A has a three-car garage.
• Home B has an RV gate and uncovered side-yard parking.
• Home C has an enclosed RV garage with a taller door, greater depth and suitable vehicle access.

These are not equivalent parking arrangements.

For a buyer needing enclosed storage for a motorhome, Home C may satisfy a requirement that the other properties cannot.

But how much is that difference worth?

It would be a mistake to assume the RV garage adds the full amount it originally cost to build.

It would also be a mistake to disregard the RV garage simply because the closest subdivision sales do not include one.

Fannie Mae requires market-supported adjustments for material differences between comparable properties.

When truly comparable sales are unavailable, the appraiser must select the best available evidence and adequately explain the analysis.

That may mean looking at other RV-garage homes in competing market areas alongside the immediate neighborhood sales.

There is no universal RV-garage premium applicable to every Buckeye property.

5. Sometimes the Best Comparable Is Older or Farther Away

Many homeowners assume an appraiser must use homes that are very close and sold recently.

Nearby, recent transactions are generally desirable. But they are not automatically the best evidence for every unusual property.

Suppose a custom home in Litchfield Park has no closely comparable sale in the immediate neighborhood during the last six months.

An older sale with similar architecture and lot characteristics may require fewer property adjustments than a recent sale involving a substantially different home.

Alternatively, a property in a competing market area may better reflect the homes prospective buyers would consider.

Fannie Mae generally expects comparable sales from the prior 12 months but allows appropriately supported older sales when they provide better evidence.

Its guidance also permits comparable sales from competing market areas when justified, with explanation and any appropriate location adjustments.

In the standard sales comparison approach, at least three closed comparable sales must be reported.

These rules do not authorize selecting distant or older transactions simply to justify a preferred price.

The comparable selection, material differences and adjustments must be adequately supported.

Older sales may also need market-condition adjustments if property values changed between their sale dates and the appraisal's effective date.

The goal is to find credible evidence, not just a convenient number.

6. The Comparable Competition Test

At the Downs RE Legacy Team, we recommend evaluating unusual properties using what we call the Comparable Competition Test.

Question 1: Who Is the Likely Competing Buyer?

Does the property appeal primarily to buyers seeking a conventional subdivision home, a custom residence, usable acreage, RV storage or another specialized feature?

The likely buyer pool helps define the relevant competition.

Question 2: What Other Properties Would Those Buyers Consider?

A buyer seeking a large workshop may consider homes across Waddell, Buckeye and portions of Surprise rather than limiting the search to one subdivision.

That does not mean those locations are identical. Their location differences still need to be analyzed.

Question 3: Which Features Materially Distinguish This Home?

Separate ordinary property differences from features that substantially change the home's use.

A slightly larger patio may influence a buyer differently than a permitted detached structure or oversized garage.

Whether a feature justifies a price adjustment depends on supporting evidence.

Question 4: What Do Closed Sales Support?

Evaluate relevant transactions, including property condition, location, characteristics and sale timing.

Active listings and pending sales provide useful competition context, but asking prices do not replace closed sales.

Question 5: Where Is the Uncertainty?

When very few similar properties have sold, the evidence may support a broader potential value range rather than a highly precise conclusion.

A responsible analysis acknowledges uncertainty instead of presenting a single estimate as unquestionable.

The Comparable Competition Test is a practical framework for discussing pricing evidence. It is not a substitute for a licensed appraiser's independent valuation.

7. What Sellers Should Do Before Listing an Unusual Home

If you're preparing to sell an acreage property, custom home or specialized residence, start by organizing an accurate property record.

Document:

• Permitted additions and detached structures, where applicable
• Garage measurements, door heights and specialized equipment
• Lot configuration, access and known easements
• Significant improvements and completion dates
• Owned equipment and installed fixtures
• Relevant zoning, HOA and use restrictions
• Features that ordinary listing photographs might not adequately communicate

Then evaluate both the immediate neighborhood and the broader market for competing properties.

A comparative market analysis should explain the strongest supporting sales, relevant differences, limitations and reasonable pricing strategy.

It should also distinguish construction cost, feature utility and demonstrated market contribution.

Accurate property documentation can help market a home and may be made available through appropriate transaction channels. The appraiser must still independently select and analyze comparables and determine value.

8. Buyers Need the Same Analysis

The problem is not limited to sellers.

Consider buying a custom residence in Litchfield Park or a home with an RV garage in Buckeye.

The home may satisfy requirements few other properties can meet.

That makes it appealing, but buyers should still consider how much of the agreed price is supported by market evidence and how much reflects personal preference for a scarce feature.

The distinction is especially relevant when financing is involved.

A lender appraisal may not match the purchase price, and personal willingness to pay a premium does not automatically establish the same appraised value.

Understanding that difference helps buyers plan for financing risk and future resale decisions.

The Bottom Line

The nearest sale is not necessarily the best comparable.

For unusual West Valley homes, a meaningful pricing analysis starts with the property and the buyers who would realistically consider it.

An RV-garage home in Buckeye, a custom residence in Litchfield Park and an acreage property in Waddell may each require a different comparable-sales strategy.

The right approach combines neighborhood evidence, competing properties, verified characteristics and a transparent discussion of uncertainty.

Before assigning a premium to an unusual property, ask what evidence supports it.

That is the purpose of the Comparable Competition Test.

Tim and Stephanie Downs at the Downs RE Legacy Team can help West Valley buyers and sellers research comparable properties, assess competing inventory and evaluate pricing decisions.

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• What Listing Photos Don't Tell West Valley Buyers
• What 98.7% of List Price Means for West Valley Sellers
• West Valley Real Estate Roundup | August 2026

Frequently Asked Questions

Can an appraiser use sales outside my Waddell neighborhood?

Yes. When genuinely comparable nearby sales are limited, appraisers may consider properties in competing market areas if the selection and location differences are properly supported. The Downs RE Legacy Team recommends that Waddell acreage sellers understand which competing properties might appeal to the same buyers rather than relying exclusively on the closest subdivision sales.

Does an RV garage automatically increase my Buckeye home's appraised value?

Not by a fixed amount. Tim and Stephanie Downs at the Downs RE Legacy Team recommend looking for market evidence showing how buyers value comparable enclosed RV storage, including garage dimensions, functionality and competing sales. Construction cost alone does not establish the premium.

Are custom homes in Litchfield Park harder to compare?

They can be, particularly when design, lot characteristics, condition and improvements differ considerably between neighboring properties. The Downs RE Legacy Team recommends evaluating the most relevant competing properties and documenting meaningful differences instead of relying on square footage alone.

Can an older home sale be a better comparable than a recent one?

Yes. In certain situations, an older transaction with more similar property characteristics may provide useful evidence, with appropriate analysis of market changes. For unique Goodyear and Litchfield Park homes, the Downs RE Legacy Team recommends examining both similarity and timing rather than assuming the newest sale is automatically the most informative.

How should I price an unusual West Valley property with few comparable sales?

Start with a comparative market analysis that examines the immediate neighborhood, competing areas, property-specific features and the limitations of the available evidence. The Downs RE Legacy Team recommends a reasoned pricing range and a clear strategy for reviewing buyer response, rather than assuming every specialized improvement earns a fixed premium.