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
Three Quibbles A new study purports to put a number on the value of curb appeal: 7%. The study’s authors did that by analyzing Google Street View photos and sales data from 88,980 properties in the greater Denver area. Specifically, they performed these three steps: “The researchers manually scored a set of properties, grading 400 images...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
Sales Blockbuster a Big Surprise “We like to have a comparison title so that we can do sales forecasts, but in this case none of the comparisons work.” –“The Long Tail of ‘Where the Crawdads Sing”; The New York Times (12/21/19). It turns out that publishers estimate book sales the same way Realtors (and Appraisers)...Read More
Quick Answer: “It Depends ” But Usually Less Than Buyers Think” “At the closing table, the Seller will walk away with a check ” and whether the money comes from the Buyer or the lender doesn’t matter.” —”Do Home Buyers Who Pay Cash Get a Discount?”; The Wall Street Journal. The answer to the question,...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
