The Art of Doing Comp’s Want the science art of Comp’s (for “Comparable Sold Properties”) in a nutshell? It’s placing a given (“subject”) property on a continuum, between the home just below it in price, and the one immediately above. What could be simpler, right? “This and That” Ahhh, but which two homes are those...Read More
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) for pricing theirs. For the uninitiated, a Comp is one of the three homes Realtors and appraisers use to determine fair market value; once...Read More
Guilt by Association? Not Necessarily As a listing agent trying to make sure their client’s home appraises, I know the concern: if the Comp’s you provide to the Appraiser are all less valuable than your client’s home (known as the “subject property”), they’ll drag its price down, too. Not necessarily. Step #1 is to realize that...Read More
Real Estate Vocabulary #101 At least when it comes to residential real estate, when is a positive a negative, and a negative a positive? Answer: when it comes to doing a Comparative Market Analysis (“CMA”), the tool Realtors — as well as appraisers — use to estimate a property’s fair market value. CMA Math So,...Read More
“What Will Buyers Pay?” vs. “What Value Does a Bank Need to Refinance the Current Mortgage?” [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] If you’re an appraiser or mortgage lender, stop reading now. No? Good. One of...Read More
“Everyone is entitled to his own opinion, but not to his own facts.” –Daniel Patrick Moynihan Substitute “Comp’s” — as in “Comparable Sold Properties” — for “facts,” and you’ve got a pretty good rule of thumb for pricing residential real estate. So, while prospective home sellers can (and do!) compare their home to any properties...Read More
