subject property

Odd Arithmetic: the In’s & Out’s — and Pluses & Minuses — of Pricing Residential Real Estate

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,...
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Homes Sold on Christmas Eve: Is There a Discount?

What Is — and Isn’t — Relevant Pricing a Home Wait a second! Why, in early July, am I discussing homes that sold last December? Because they pop up as “Comp’s” (Comparable Sold Properties) for at least 2 relatively unique homes that I’m trying to price for clients now. No doubt (many) other Twin Cities agents are...
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Couldn’t Refinance in February? You May Want to Try Again in June

Changing Mix of Comp’s (“Comparable Sold Properties”) It may strike non-professionals as odd, but real estate market values are established by “looking through the rear view mirror” — that is, by scrutinizing recent, similar sales as near to the subject property as possible. Every rule has its exceptions, but the conventions in residential real estate are: ...
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Comp’s for Advanced Beginners

Weighing Comp’s and “Kind-of-Comp’s” The cornerstone of establishing market value for a given property is the CMA, or “Comparative Market Analysis.” As prepared by both Realtors and Appraisers, it consists of selecting a peer group of three homes (“Comparable Sold Properties”), then going through a compare-and-contrast process sizing up each of the Comp’s relative to the “subject”...
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Facilitated Deals and Stealth Comp’s

Under Off the Radar In theory, to do a market analysis for a given home, you (“you” being a Realtor or Appraiser) log on to MLS, and do a search for similar, nearby homes that have sold within the last six months. Those are called “Comp’s,” and the magic number is three, good ones. Step...
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Thin Comp’s, Flawed Appraisals

Comparing Apples and Oranges:  Case Study #17  I’ve posted previously about how a slow market — combined with a relatively unique property — can bedevil Realtors and appraisers alike trying to estimate a home’s value. That’s because to be valid, a comparative market analysis must include three sales of similar properties no further back than...
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