It’s Not A Comp Till it Closes
What do you do as a listing agent if the home you just sold (subject to the Buyer obtaining financing) presents an appraisal challenge?
That has been a frequent occurrence in the Twin Cities this year as prices rebound, but the most recent sales — and the ones which appraisers rely on to establish value — are at lower levels (that would be the very definition of a rising market, by the way).
That can also be the case when there are no recent, similar sales to price off of.
Lagging Indicator, or, Looking in the Rearview Mirror
If there are helpful “Pending” sales about to close, one especially proactive strategy is to contact the appraiser, and get them to delay their report until after the “Pending” sales actually close.
Then, the homes officially qualifiy as “Comp’s” (Comparable Sold Property), and their sold price (less any seller-paid points) is a matter of public record.
Thanks to Lyndon Moquist, Managing Broker at Edina Realty’s Eden Prairie office, for sharing the foregoing strategy at this morning’s Exceptional Properties meeting.
**A Comp is “helpful” if it supports the price of the subject property (the one being appraised).
Conversely, it’s harmful if it undermines the subject property’s negotiated price.