Comparing Honey Crisps to Braeburns One of the more quizzical looks Realtors get is when they (try to) explain to a prospective home Seller that their neighbor’s house isn’t a “Comp” (Comparable Sold Property). In plain English: it isn’t relevant ” at least directly ” for pricing their home. For the uninitiated, a Comp is...Read More
How do appraisers account for a bowling alley in the basement? Or some other unusual feature, like a helicopter landing pad, 10,000 gallon aquarium, basement basketball court, or dozens of other unusual ” and therefore hard to estimate ” home features? They don’t. Huh?? Self-Cancelling Features If it’s possible, the preferred strategy in such situations...Read More
(Partial) Realtor Job Description 2020: Multiple Choice Test your knowledge of modern residential real estate practice, and answer the following multiple choice question: Q: Who should the listing agent (representing the Seller) meet at the home? A. The appraiser working for the Buyer’s lender; B. The home inspector doing the city Truth-in-Sale-of-Housing (“TISH”) inspection; C. The...Read More
Did the Appraiser Goof? A client trying to refinance his mortgage recently ran into an infrequent but not unheard of problem: a low appraisal. My client was convinced that the appraiser goofed because ” amongst other things ” the appraiser listed the home as only having one Bathroom, not two. Unfortunately, the second Bathroom is...Read More
When Doesn’t “Sold” Mean “Sold?” When it comes to residential real estate, when does “Sold” not mean “Sold?” When it means “Pending” (as in, when there’s a big, bold “Sold” sign in front of a “For Sale” home). Huh?!? At least in Minnesota, once the Buyer’s Inspection has been removed,** the convention is to switch...Read More
How do Appraisers and Realtors account for a bowling alley in the basement? Or some other unusual feature, like a helicopter landing pad, 10,000 gallon aquarium, basement basketball court, bomb shelter, soundproof music studio, or dozens of other unusual —and therefore hard to estimate — home features? They don’t. Huh?? Self-Cancelling Features If it’s possible,...Read More
