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Old 05-15-2008, 07:46 PM
 
Location: Durham, NC
426 posts, read 1,294,951 times
Reputation: 176

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The agent I'm using to buy is now doing a CMA. He's got a more reasonable set of comps he's working with. We'll see what he comes up with.
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Old 05-15-2008, 08:35 PM
 
Location: Durham, NC
426 posts, read 1,294,951 times
Reputation: 176
Ok. I can reasonably say that the guy pulled his numbers out of his ass. He sent me the 3 "comps" he used. My house was built in 1985.

One of them was built in '88 (good) but in a neighborhood 1 mile further north from I-85 (bad). Still sold for $10 more/sq. foot than he told me was the high end.

The next was built in '99. About 4 miles further north from I-85. Smaller.

The final one was on my street, but is a ranch (mine is a 2 story), built in 1970.

What the hell? Worthless "comps".

My buyer's agent came up with 3 homes sold on my street. All much more similar to my home. All with a price/sq foot about $8 more than other estimate.

Thanks for bearing with me during this emotional time.
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Old 05-15-2008, 09:32 PM
 
8,780 posts, read 16,225,909 times
Reputation: 5219
Quote:
Originally Posted by acegolfer View Post
Remember, the agent is trying to buy your listing. He has no incentive to give you low prices.
High listing price= No sale/No commision

Low listing price= Quick sale/Quick commision

"Low-listing" seems to be the modus operandi for "discount" brokers in my area. "Full-service" agents don't appear to totally forsake this method, either.
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Old 05-15-2008, 10:06 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,454,422 times
Reputation: 2661
Quote:
Originally Posted by sbanawan View Post
The agent I'm using to buy is now doing a CMA. He's got a more reasonable set of comps he's working with. We'll see what he comes up with.
I would expect any agent providing a CMA to offer a cogent explainiation of why the price comes out where it does...

If you just get sweet talk about life is hard and that is how it is find a new agent.

If you can't explain your number well to a rational human being you don't deserve the listing.

Many can't. Don't hire them. If I tell you that your home is worth less than you would like you can bet your bippy I got a couple of pages of exactly why that is so. I expect you not to like my answer so I have a really clear explanaton. If I don't...don't hire me.
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Old 05-16-2008, 05:19 AM
 
Location: Durham, NC
426 posts, read 1,294,951 times
Reputation: 176
Quote:
Originally Posted by Stratford, Ct. Resident View Post
High listing price= No sale/No commision

Low listing price= Quick sale/Quick commision

"Low-listing" seems to be the modus operandi for "discount" brokers in my area. "Full-service" agents don't appear to totally forsake this method, either.
Exactly my thoughts about this guy. As I said above the comps he used were ridiculous by any measure. They either weren't the same age, in a very different location further away from Duke or a completely different "neighborhood" as far as personality goes. I wanted to write back to the guy "these are the comps you came up with when the house across the street was sold recently?" But I didn't and just thanked him for his time.

The 3 my buyer's agent came up with are much more sensical.
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Old 05-16-2008, 06:50 AM
 
Location: Central Texas
19,840 posts, read 36,338,327 times
Reputation: 21157
High listing price= No sale/No commision

Low listing price= Quick sale/Quick commision

Add to that:

Low listing price = Lower commission

So, it's a fine art to price a home to get the best possible price in the quickest possible time. Which is what most sellers want - and it's also a fine art figuring out which of those is really more important to them, because in normal markets, one or the other has to give at least a little. Most sellers will tell you both are equally important, or if they do tell you that one is more important, that may not always be what's really the most important thing to them, when the rubber hits the road.
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Old 05-16-2008, 08:55 PM
 
Location: Durham, NC
426 posts, read 1,294,951 times
Reputation: 176
Quote:
Originally Posted by TexasHorseLady View Post
High listing price= No sale/No commision

Low listing price= Quick sale/Quick commision

Add to that:

Low listing price = Lower commission

So, it's a fine art to price a home to get the best possible price in the quickest possible time. Which is what most sellers want - and it's also a fine art figuring out which of those is really more important to them, because in normal markets, one or the other has to give at least a little. Most sellers will tell you both are equally important, or if they do tell you that one is more important, that may not always be what's really the most important thing to them, when the rubber hits the road.
How much lower commission by getting me to drop my listing price by $10,000? Just $300. I'd say that if it sells the house 1 month quicker, that's a fair trade off for the listing agent. Not for me, though.

But I got the CMA from my agent. He said I should list it $20k higher than the other guy's high estimate. This number is on par with what was sold in the neighborhood early last year (and the recent MLS numbers indicate we're back at about late 2006 prices), so that seems about right. I'm going to go about 5k lower than that to start. We'll still have made a nice profit even if we have to go down another 10k from that to sell the house.

Gotta get a new roof, fix up the porch and clean the hell out of this place before it gets listed. Wish me luck!

Thanks for all the advice.
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Old 05-17-2008, 07:56 AM
 
Location: Central Texas
19,840 posts, read 36,338,327 times
Reputation: 21157
Early last year? A good CMA takes sales for the past six months (these days, we're using 90 days if there are enough sales to get three good sold comps, if not, we start going back a month at a time) and no further back. That could make all the difference in the world right there. A CMA based on year-old comps, unless your market is rock steady, is going to be out of date and inaccurate. I note that you say that recent MLS numbers indicate your area is back at late 2006 prices (and woo hoo, if true!) - what numbers are those, and did your agent show them to you and explain why he thinks that? If that's the case, why didn't he use current comps instead of aged ones?
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Old 05-17-2008, 11:15 AM
 
5,463 posts, read 5,776,669 times
Reputation: 1803
I don't think the point was that the comps were from last year. I'm reading it as the comps were current, and those current comps have fallen to a price that would be in line with late 2006 prices for the area. Sounds about right on a macro scale from the data I've seen for this area, but that doesn't say anything about the poster's particular neighborhood.

Durham county average price was $187,500 or so this month. The last time it was that low was Sep 06, at $187,700. Median price is a bit less clear - $161,000 this month, it dipped below that for a few months around Sep-07, then before that it was Jan-07 since it's been that low. It was consistently at that price 3-4q 2006 (4 months in a row).

I think the comps are the most important thing, and the "at 2006 prices" is just trivia. At least the individual comp seems to matching the bigger picture, though, which would give me some confidence in the comp that was lacking from the original one.
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Old 05-17-2008, 11:18 AM
 
Location: Durham, NC
426 posts, read 1,294,951 times
Reputation: 176
Quote:
Originally Posted by TexasHorseLady View Post
Early last year? A good CMA takes sales for the past six months (these days, we're using 90 days if there are enough sales to get three good sold comps, if not, we start going back a month at a time) and no further back. That could make all the difference in the world right there. A CMA based on year-old comps, unless your market is rock steady, is going to be out of date and inaccurate. I note that you say that recent MLS numbers indicate your area is back at late 2006 prices (and woo hoo, if true!) - what numbers are those, and did your agent show them to you and explain why he thinks that? If that's the case, why didn't he use current comps instead of aged ones?
See this reply.

Quote:
Originally Posted by KCfromNC View Post
I don't think the point was that the comps were from last year. I'm reading it as the comps were current, and those current comps have fallen to a price that would be in line with late 2006 prices for the area. Sounds about right on a macro scale from the data I've seen for this area, but that doesn't say anything about the poster's particular neighborhood.

Durham county average price was $187,500 or so this month. The last time it was that low was Sep 06, at $187,700. Median price is a bit less clear - $161,000 this month, it dipped below that for a few months around Sep-07, then before that it was Jan-07 since it's been that low. It was consistently at that price 3-4q 2006 (4 months in a row).

I think the comps are the most important thing, and the "at 2006 prices" is just trivia. At least the individual comp seems to matching the bigger picture, though, which would give me some confidence in the comp that was lacking from the original one.
You explained what I was trying to say much more clearly. Thanks.
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