U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-19-2009, 09:59 AM
 
7 posts, read 28,877 times
Reputation: 10

Advertisements

i am interviewing 3 realtors to sign up with (as my buyer's agent), and i asked them to do a CMA on one property i am interested in. all 3 realtors came up with different comps and differing suggested offer prices and suggested purchase prices for the same property. this is very disconcerting. how can 3 different realtors have such varying ideas of what the same property is valued at and what are comps for that property? some of them included comps in different neighborhoods, some of them included short sales and foreclosures, one of them said i should "go by what the county says is the market value."

WTF?????

these are all licensed agents with many many years exerience in the field. this basically tells me that buying a property at fair market value is an absolute crapshoot. whoever says they got a deal on a property, or got it at "fair market value", is delusional. there is no such thing. it's all SUBJECTIVE!!!!

the final queston is: what will the appraiser value the property at? i bet he comes in with a 4th and also differing number!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-19-2009, 10:25 AM
 
596 posts, read 2,771,104 times
Reputation: 202
I bet the 4th appraiser does, too.

We have a very 'sweet' woman with many years experience, and our experience has been so frustrating. She was all about listening to what we wanted and agreeing with us in the beginning, but when negotiations started, another personality came out in her. People warned us, but you would never believe it until you experience it...

This r.e.agent doesnt listen to us, and then go fight for us with the other agent/sellers. Instead, she rallies our concerns, needs, wants, questions with her own answers and tried to convince us that we're asking too much (whether its for the closing costs from sellers contribution or the repairs to be made, everything). She blocks our moves instead of helping us and making the moves and negotiations like an agent should. We're so far in, we're just proceeding and saying "I cant wait until this is over and we never have to speak with her again" sort of thing. At this point, we are not going to the broker as advised because the company is so small, and we are certain her relationship with the broker is excellent and we'd get no where or worse.

My advice is to pick someone that impresses you with their reputation - someone that you trust thought he or she did an awesome job. Additionally, I would look for them to be really hearing you and agreeing with you, and look for signs that they have the skills to work aggressively on your behalf (ie, can he or she ARGUE with the other agent, if it comes to that? Because the way its working out for us right now, we're arguing with our agent! ...and it SUCKS).

I would do the comps stuff on your own. Tell them to give you ALL the recent sales or whatever, and then search and destroy - pick out the ones you know are most similar to your own. Dont even consider the tax appraised value, etc.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 10:47 AM
 
575 posts, read 1,711,117 times
Reputation: 307
Quote:
Originally Posted by aig-rage View Post
the final queston is: what will the appraiser value the property at? i bet he comes in with a 4th and also differing number!

I'm guessing the appraisal will come in at whatever price you and the seller agree on, or pretty close anyway.

As for the CMA, I learned in the first day in stats 101 that you can manipulate numbers to prove whatever you'd like. It's easy when realtors choose or discount individual comps to prove their position.

I always insisted that my realtor send me every sale in the neighborhood. If she felt one was not a comp, for whatever reason, she was free to make a note of that, but I still wanted to see all the information for myself.

Of course we could get into a whole discussion about how best to determine RE value and whether the current system works or not.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 11:24 AM
 
Location: Just south of Denver since 1989
11,654 posts, read 32,624,785 times
Reputation: 8589
Did any of them see the property?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 11:37 AM
 
Location: Clayton, NC
502 posts, read 1,588,783 times
Reputation: 407
CMAs and appraisals are very subjective, so I'm not surprised by the variations at all. Base your decision on how they back up their numbers. Any agent can pull a few sold homes, but a good agent should be able to properly analyze the information in front of them and weed out any "outlyers". Remember, any and all offers are your decision, not theirs. The agent should advise you, not force you. Most importantly, go with the agent that you feel most comfortable with as they will be helping you with what may be biggest purchase of your life.

Good luck!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 12:12 PM
 
Location: Salem, OR
15,204 posts, read 38,001,638 times
Reputation: 16358
Quote:
Originally Posted by 2bindenver View Post
Did any of them see the property?
I was wondering that as well.

I think the general rule is that when foreclosures/short sales are 25% of the market then you include them as comps because they are a large part of the market and as such will drive prices down. So it may have been appropriate to pull those in depending on the overall market conditions.

I will also pull homes from other similar neighborhoods. Unless someone wants a golf course neighborhood or something specific, in my area we have many "competing" neighborhoods where buyers will look because they have similar characteristics (good schools, close to parks, stable, etc)...so it may have been appropriate to pull in comps from other neighborhoods depending on local buyer behavior.

Then, your agent should be pulling as many comps as possible. If each of them gave you three active and 3 solds, then that isn't very good data to work with. They are PLENTY of active listings to pull from, and yes...it may be that there are only 3 sold comps. It depends.

And yes, pricing a home is part data analysis and part subjective.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 12:15 PM
 
596 posts, read 2,771,104 times
Reputation: 202
Quote:
Originally Posted by HomeHuntress View Post
CMAs and appraisals are very subjective, so I'm not surprised by the variations at all. Base your decision on how they back up their numbers. Any agent can pull a few sold homes, but a good agent should be able to properly analyze the information in front of them and weed out any "outlyers". Remember, any and all offers are your decision, not theirs. The agent should advise you, not force you. Most importantly, go with the agent that you feel most comfortable with as they will be helping you with what may be biggest purchase of your life.

Good luck!
We were (un)lucky enough to have an agent that analyzed and weeded the information to entice us to offer more, counteroffer more, and on an on - we know she only wanted the sale and didnt really care about us. We ended up buying the home for the price she was trying to get us to BEGIN the first offer with! I would love to throw that back at her now but we're not like that. I'm just glad we went with our gut and didnt put all our faith in her (sweetly encouraged) advice. She continues to be wrong on things to this day.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 12:19 PM
 
Location: Williamsburg, VA
202 posts, read 676,082 times
Reputation: 121
Pricing a house IS subjective. People want hard facts -- what is this house worth --because they don't want to pay more than that (although they do want to pay less than that). Well, when the buyer and seller agree on a price and the house is sold, voila, that is what the house is worth. Comps can be a guideline, but I think they can also be largely irrelevant. I have accepted an offer on my house now, and the number is nowhere near the CMA numbers I got back in January from three different realtors.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 01:05 PM
 
Location: Gray
50 posts, read 130,269 times
Reputation: 27
My personal opinion is that short sales and foreclosures should not be included in comps. These are "distressed" properties that shouldn't factor in. It is also my understanding that our local appraisers do not include them as well.

Regardless of all else, the bottom line is a ready, willing, and able buyer is who truly establishes the "fair market value" for a piece of property!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-19-2009, 01:20 PM
 
Location: Tricoastal
353 posts, read 763,914 times
Reputation: 265
very depressing post for a buyer. how am i to avoid overpaying?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top