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I call realtors all the time but rarely receive a return call.
There are other ways to determine the condition of a comparable sale.
Just out of curiosity - how? If there are pics only showing the best parts of the home and descriptions saying how wonderful it is, how can you know about interior quality, dis-functionality of floor plan (a huge price deterrent), or major inspection issues that pushed the price down? There are times that I have been completely floored by how much worse a listing was in person than on the MLS. How do you find out if you don't talk to an agent involved in the sale?
sorry I didn't read all the comments.. but in this market.. we would renegotiate the price down to appraisal, walk away, or pay the contract price anyway ( I would never advocate a buyer to do that). if the appraisal was just completely off base, I would advocate for a 2nd opinion on the appraisal.
Just out of curiosity - how? If there are pics only showing the best parts of the home and descriptions saying how wonderful it is, how can you know about interior quality, dis-functionality of floor plan (a huge price deterrent), or major inspection issues that pushed the price down? There are times that I have been completely floored by how much worse a listing was in person than on the MLS. How do you find out if you don't talk to an agent involved in the sale?
The brief version is: the sales price of a comp is, generally speaking, the depreciated value. I perform the cost approach on every sale I use as a Comparable, in addition to the Subject and determine depreciation of all which I base my condition on, guided by Marshall and Swift and other cost sources. I also look at the quality of construction for each and adjust accordingly if necessary.
Just out of curiosity - how? If there are pics only showing the best parts of the home and descriptions saying how wonderful it is, how can you know about interior quality, dis-functionality of floor plan (a huge price deterrent), or major inspection issues that pushed the price down? There are times that I have been completely floored by how much worse a listing was in person than on the MLS. How do you find out if you don't talk to an agent involved in the sale?
There are numerous ways to learn about the condition of comps (good and bad condition).
I've previously appraised the comp.
I drive by the comp and see the dumpster out front.
I've been in other homes that are the same model, so I know the floor plan.
I see the floor plan online
I knock on doors and talk to the owners.
I go inside the comps
I measure the comps
I'm fluent in "Realtorese". I look at what isn't said or pictured as much as what is revealed.
I look at the sales price. If it is substantially different from all the others, there's a reason.
I have done each one of these things, and many others, more frequently than you would think.
Now, on the flip side. When looking at the high sales do you:
Call the other realtor to find out the extra features that weren't revealed in the listing?
Find out if there were sales concessions?
Verify it was a legitimate sale?
Check if the purchase price included, furnishings, an extra lot, or something else of value?
Or a number of other things that would show they are superior to your listing?
You are biased towards getting your seller the highest possible price, and rightly so. However, as an appraiser, I have to be unbiased and research ALL the sales, not just those that make the value.
Regarding the time adjustments. There are some markets that are increasing and it can be documented. I have been using upward time adjustments for some markets recently, when warranted, and have not had a problem with lenders accepting them.
There are numerous ways to learn about the condition of comps (good and bad condition).
I've previously appraised the comp.
I drive by the comp and see the dumpster out front.
I've been in other homes that are the same model, so I know the floor plan.
I see the floor plan online
I knock on doors and talk to the owners.
I go inside the comps
I measure the comps
I'm fluent in "Realtorese". I look at what isn't said or pictured as much as what is revealed.
I look at the sales price. If it is substantially different from all the others, there's a reason.
I have done each one of these things, and many others, more frequently than you would think.
.
If that was done for a listing I had getting appraised, I would feel comfortable with the result. I don't think most appraisers here go to that extent except a drive by and occasional call to listing agent.
Many of our homes are custom, but that can lead to some really odd layouts and floor plans. I showed a large house last weekend that looked wonderful in the pictures, but had lots of oddly shaped small rooms (none big enough for the pool table that my client wants) and the only way to get from the master to the kids rooms was through a bathroom or going downstairs and up another set of stairs.
If that was done for a listing I had getting appraised, I would feel comfortable with the result. I don't think most appraisers here go to that extent except a drive by and occasional call to listing agent.
Many of our homes are custom, but that can lead to some really odd layouts and floor plans. I showed a large house last weekend that looked wonderful in the pictures, but had lots of oddly shaped small rooms (none big enough for the pool table that my client wants) and the only way to get from the master to the kids rooms was through a bathroom or going downstairs and up another set of stairs.
Some homes have functional issues that are unbelievable. The ones I remember most are the bathrooms. The toilet in a closet....regular closet, sliding glass doors, and a toilet that just barely allows doors to close. Or, the closet converted to a bath. It wasn't wide enough for a toilet in the normal position, so they turned the toilet so it faced the shower, with the sink behind it.
I've occasionally seen Realtors mention irregularities, closing costs, etc in Closed listings. It usually starts with "Attention appraisers". The comments are always helpful. I love these and wish more would do it.
Anything significant that would affect the value of a property would be obvious in its sales price. That's why good appraisers look at much more than just the 3 or so comparables that are used in the report. It's when the adjusted sales price of a particular property comes out much differently than the others that an appraiser needs to get on the telephone and start calling the people who were involved in the transaction. So after looking at a large set of data, those properties that have some 'unknown' value factor that can't be determined aren't used in the report. There are some sales that are going to have an non-typical motivation by either the buyer or seller that are discarded.
I was working on an appraisal this week where there was a $15K difference between the recorder's office data and the MLS price. I called the agents as well as the homeowner and was still unable to figure out why the transfer tax declaration stated a price that was $15K more than what they paid. My guess is that someone simply made a mistake on it, but because I was unable to verify the price for certain, I ended up not using that sale as a comparable.
Seller financing all or part or the purchase price.
It has worked for me.
how does one do that? some dunce appraiser came in at 110 high on a house I am selling for 117 (and with a sellers assist at 117), but I would be willing to finance the 7k difference, if I knew how?
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