[quote=CA renter]The method of payment should not matter. There is no better comp than the very house, itself. Add the actual cost of materials used for the upgrades/improvements, plus a reasonable about for labor (@ ~$15/hr, on average), and that’s your price.[/quote]
Under the ideal condition, yes, the method of payment should not matter. But I’m sure you’re well aware that depending on the seller’s reason to sell the place, it definitely matter. recordsclerk described one scenario. Here are a few more: 1) a crack slab that requires a cash only offer (I’ve seen it go for ~$200k-250k below market value). Because it’s a cash only deal, the demand is VERY small. Which drives down price for that particular home (well below the market price – cost of fixing the slab). 2)A short sale. Sell don’t care what price it get sold for but they want to get out of the house, so they pick the buyer that’s most likely to be there when the deal goes through. I actually asked an appraiser this a few days ago and he did say he would add some $ amount if he uses a short sale as a comp, since SS normally sell for below market value. 3)Probate sale (I think you had personal experience with this), where the seller are out of state and they just want it SOLD. If a buyer comes in with all cash below the market value and other bids, I’m sure the seller would be incline to accept such offer. Obviously, it has to still be reasonable.

You fail to see that a move in ready house attracts a lot more buyers, which would drive up the price. So, it’s simply about supply and demand. Although it might be the exact same house, the condition is different, which would attract different amount of interests.