Realtor market analysis widely variant? Get an appraisal? Really independent? (RE agent, Realtors)

[funlife1]

Considering getting an independent appraisal of our house value in order to sell it. Three local realtors did market analysis and came with different pricing that ranged about 100K. House has most of its SF on main floor (2600 main floor/800 up). Very few homes in the area have even a master on first floor. The problem of no true comps was stated by all three realtors.

We are not sure how much the difference in SF location really translates to difference in overall value? If we decide to get an appraisal, have read that some appraisers rely on realtors to provide the comps?

Will an appraisal add value to the decision of pricing? We could ask the appraiser who did the work when we bought or would it be better to go with another appraiser? We thought about going with a realtor and getting them to have it appraised, but we would wonder if having the realtor weigh in with the appraiser would be a source of bias.

We are not looking for the highest price, just the closest to reality.

Any thoughts appreciated.

[jdhall1]

That's a big price range. I would hire an apprasier. They tend to pull their own comparable sales. Go with the agent that you feel most sure about their abilities & marketing plan if you decide to sell.

[Grlzrl]

There would be no reason that appraisers would use realtors to get comps. They have sources. That's a HUGE price differential. What is the market value to have that big of a price difference?

[Diana Holbrook]

Appraisers are a little more scientific about it, they don't use Realtors to find comps, but they will likely be using the same comps that the Realtors used.

I would take a good look at the comps and see which of them REALLY are the most comparable to yours and see if that doesn't help narrow down which price is closest. Truth is, with unique properties that are in high demand, if that is what yours will be, it only takes one buyer and they ALL might be right.

[adjusterjack]

Try doing your own comps to see if the realtors missed anything. Look on Zillow just for sales in your subdivision for the past year and a half. Go out a few miles if you have to.


List all of the sales then start comparing them to your house. You'll have a good idea of where your price range should be before you hire an appraiser.

[Spottednikes]

I'd contact the 3 agents that did comps and tell them you have comps from other agents and theirs are "x" higher or lower and ask them to justify why theirs is correct.
High ones often are agents trying to buy the listing. Once listed, they will tell you market dropped and want you to reduce price.
If you underprice it, there is a chance that if it truly is below value, there will be a bidding war and price will get bumped well over asking price. If you list low, put something in mls that says open house on "x" dates, all offers will be reviewed on "x" date.
I'd search comps, figure out price per sf on houses within 300 sf. Add or subtract for location...if one house is a view lot, it will bring more money. Updated will bring more money. 3 car gar vs 2 car will bring more money. No garage huge deduction. Neighbors able to look into yard when comps are more private, deduct from yours. One story homes typically are more per sf than 2 story. Busy road is big deduction. School system can be a big difference.
A huge house will typically be priced less per sf than a smaller home comparably equipped in same neighborhood.
You can look at comps the agents gave you and see where the differences are.
I don't know of any agents that will pay for a seller's appraisal. That's on the seller to pay if they want it done because they don't trust the comps.

[Okey Dokie]

If 3 realtors all said there weren’t any “true comps” why do you think an appraiser is going to find any?

Assuming these realtors are competent, I like the idea of going back to them, tell them you have 3 greatly varying appraisals and ask them to justify their numbers for you.

[BoBromhal]

I agree with the ask all 3 of them to justify (which means, if they haven't show you the comps they used) and explain.

[bbronston]

Appraisals can vary, too, although I doubt they’d vary by that much. However, it also depends on the amount you are being told. IOW, $100K variation on a $400K house is a problem but $100K difference among $1.5M homes is much less significant. Anyway, you could get an appraisal and I think it’s probably a good idea but don’t think it will mean much when you are negotiating.

I went through this over the summer with some buyers of mine. They wanted a house where the seller got an appraisal and wouldn’t go any lower than that amount. My buyer offered $15K less ($510K listing price) and the seller said no. Meanwhile, it sat vacant and there was a comp at $485K since the appraisal. Eventually, it finally sold for $5K less than our offer.

One other approach is to take all three suggested listing prices and plug those amounts into one of the property search apps. See what you get for the money, so to speak. Forget all the other criteria and just look at what is available at that price and compare what you see to your house.

[Brandon Hoffman]

Originally Posted by Okey Dokie

If 3 realtors all said there weren’t any “true comps” why do you think an appraiser is going to find any?

Assuming these realtors are competent, I like the idea of going back to them, tell them you have 3 greatly varying appraisals and ask them to justify their numbers for you.

Agreed. And then hire the best agent and price where you think it will sell, then reduce if it doesn't. If you don't get offers that is the market telling you that you guessed wrong on price.