Then: $11.5 Million Now: $5.5 Million No, that’s not a typo: this Orono home is now listed for $5.5 million, a whopping $6 million below its original (2010) list price of $11.5 million (serious change in the Midwest — or anywhere else for that matter). Is it well-priced now? I have no idea — I...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
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
Telling Sellers What They Want to Hear — At First While my track record landing listings is very good — it’s not perfect. The most common reason prospective Sellers choose another Realtor? The other Realtor took the listing at a higher, unrealistic price — a practice that Realtors call “buying the listing.” Exhibit A Last June,...Read More
