(Mis)Reading the Signs Pricing real estate is fundamentally precedent-driven. In other words, if you want to establish an estimated fair market value for “Property H,” you first need to determine what Properties E, F, and G sold for. In Realtor (and Appraiser) lingo, E, F, and G are called Comp’s (“Comparable Sold Properties”), and the compare-and-contrast process...Read More
Shooting the Messenger Listing Agent I think the prospective client to whom I made a listing presentation the other week is hiring someone else. Or, at least, I think he is; he never returned my phone calls after the meeting. Setback — Or Not? Five years ago — 60 or 70 deals back, in Realtor vernacular — I would...Read More
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...Read More
Appraisal Version of “Garbage In, Garbage Out” Homes under contract that don’t appraise have been a big issue in the Twin Cities housing market all Spring. See also, Jim Buchta’s “Low Home Appraisals Hold Down Area Values” in this past weekend’s Star Tribune. What is the most common reason? A. Multiple offers drove the price...Read More
How does a listing agent who just sold their client’s home in multiple offers ensure that it appraises? A. Provide the Appraiser with helpful Comp’s (Comparable Sold Properties). B. Email the Appraiser the runner-up offers (with identifying info expunged). C. Raise the listing price on MLS. D. All of the above. Correct answer: D. Of course,...Read More
Supportive — and Unsupportive — Comp’s In appraiser (and Realtor) lingo, a “supportive” Comp (“Comparable Sold Property”) is one that substantiates the value of the subject property, i.e., the one that the Buyer is seeking to obtain a mortgage on. Ergo, an “unsupportive” Comp is one that . . . torpedoes the value of the...Read More
