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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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comparing COMPS...need help
i posted yesterday that we saw a house we really liked. the agent just sent us the comps but i dont' understand...all the houses, except 1, is all new construction and the house we liked is not.
i read online that comps should be at least the the same year at the house. is my agent screwing with us? anybody know what else i should look for in comparing COMPS?
TIA
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Posted 7/28/10 10:29 AM  |
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Member since 5/05 12578 total posts
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Re: comparing COMPS...need help
unfortunately in this market, there aren't always true comps available. What your agent should be doing is looking at the ones available and marking the price up or down for the differences (just like an appraiser would.)
I'm not a RE person or an appraiser so I'm no expert, but from what i understand everything is assigned some sort of value or price range. For example they told us our inground pool added $20k of value, CAC added $10K of value, etc. I'm not sure how they valued the age of the house, since most of our comps where built around the same time.
We were looking at a comp that sold $60k below our asking price. So if you took their selling price and added $20k for the pool, $10K for CAC, etc. (we have 2 fireplaces, an extra room, etc) the value of our house was close to theirs IF they had all the extra stuff we did.
Your agent really should sit down with you and walk you through this. I wouldn't have been able to figure it out on my own either
Message edited 7/28/2010 10:34:52 AM.
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| Posted 7/28/10 10:33 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: comparing COMPS...need help
the MAJOR things I look for in comps (as an appraiser):
GLA - gross living area/square footage of the house
lot size
condition
location
Age of the house is most important when dealing with new construction or very old houses. But the difference between a house thats 40 yrs old or 50 years old isn't that significant.
I also make adjustments for the details: AC, garages, basements, pools, etc.
New construction always goes for a premium. Are sales so limited that there aren't better comps, or is the REA trying to justify a high asking price...?
Message edited 7/28/2010 11:13:53 AM.
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| Posted 7/28/10 11:13 AM |
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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Re: comparing COMPS...need help
Posted by -Lisa-
the MAJOR things I look for in comps (as an appraiser):
GLA - gross living area/square footage of the house
lot size
condition
location
Age of the house is most important when dealing with new construction or very old houses. But the difference between a house thats 40 yrs old or 50 years old isn't that significant.
I also make adjustments for the details: AC, garages, basements, pools, etc.
New construction always goes for a premium. Are sales so limited that there aren't better comps, or is the REA trying to justify a high asking price...?
i found 1 that is in the same area but a few streets down. here is the specific.
sold house/house we like:
total living area: 2997/2289
bed, bath: 4,3/ 3,4
lot size: .4137 / .3627
central air: no / yes
basement: not finished/ finished
garage: yes / no
condition: original / updated
location: inside of the complex area / on 1 of 3 streets going into the complex area
can i use this and just add the value of things that the sold house didn't have?
Message edited 7/28/2010 11:40:46 AM.
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| Posted 7/28/10 11:38 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: comparing COMPS...need help
Posted by julybride0706
i found 1 that is in the same area but a few streets down. here is the specific.
sold house/house we like:
total living area: 2997/2289
bed, bath: 4,3/ 3,4
lot size: .4137 / .3627
central air: no / yes
basement: not finished/ finished
garage: yes / no
condition: original / updated
location: inside of the complex area / on 1 of 3 streets going into the complex area
can i use this and just add the value of things that the sold house didn't have?
You can't just ADD value, you also have to SUBTRACT for the things your house doesn't have: (more sqft, garage, larger lot, private street?)
700sqft larger is a pretty significant difference. Not a great comp, IMO.
If you send me the address or MLS #, I can look for better comps. But what is your objective? Are you trying to decide what to offer?
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| Posted 7/28/10 6:36 PM |
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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Re: comparing COMPS...need help
Posted by -Lisa-
Posted by julybride0706
i found 1 that is in the same area but a few streets down. here is the specific.
sold house/house we like:
total living area: 2997/2289
bed, bath: 4,3/ 3,4
lot size: .4137 / .3627
central air: no / yes
basement: not finished/ finished
garage: yes / no
condition: original / updated
location: inside of the complex area / on 1 of 3 streets going into the complex area
can i use this and just add the value of things that the sold house didn't have?
You can't just ADD value, you also have to SUBTRACT for the things your house doesn't have: (more sqft, garage, larger lot, private street?)
700sqft larger is a pretty significant difference. Not a great comp, IMO.
If you send me the address or MLS #, I can look for better comps. But what is your objective? Are you trying to decide what to offer?
we both like the house and probably would like to make an offer. not totally sure yet since we only saw it 1x. we just want to have a figure in our head or at least be realistic to see if we can afford it before we really fall in love with the house.
sent u an fm
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| Posted 7/28/10 7:44 PM |
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Re: comparing COMPS...need help
Is the agent working for you or the seller?
Did you sign a disclosure form explaining who the agent is working for?
If you are not working with an agent to protect your interests, it is buyer beware.
If you want some assistance in the purchase, I work free of charge to you. Then you get the benefit of having an agent on your side protecting your interests.
Good Luck
Arthur
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| Posted 7/28/10 8:46 PM |
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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Re: comparing COMPS...need help
Posted by EXIT Realty Achieve
Is the agent working for you or the seller?
Did you sign a disclosure form explaining who the agent is working for?
If you are not working with an agent to protect your interests, it is buyer beware.
If you want some assistance in the purchase, I work free of charge to you. Then you get the benefit of having an agent on your side protecting your interests.
Good Luck
Arthur
she working for us. no, we didn't sign anything. i know they still look out for the seller's best interest.
if she showed us the house, i can't go to another agent with an offer right?
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| Posted 7/28/10 10:03 PM |
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Re: comparing COMPS...need help
Posted by julybride0706
Posted by EXIT Realty Achieve
Is the agent working for you or the seller?
Did you sign a disclosure form explaining who the agent is working for?
If you are not working with an agent to protect your interests, it is buyer beware.
If you want some assistance in the purchase, I work free of charge to you. Then you get the benefit of having an agent on your side protecting your interests.
Good Luck
Arthur
she working for us. no, we didn't sign anything. i know they still look out for the seller's best interest.
if she showed us the house, i can't go to another agent with an offer right?
She is not working for you if you did not sign anything. If you are talking price, which you are, according to the law she has to disclose who she is working for. You want to know.
You can work with any agent you want to work with if you do not have a written agreement. This is her mistake for not disclosing her agency ( Broker, Seller or Buyer) to you.
Please be careful and get another opinion.
Diid Lisa get you better comps?
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| Posted 7/28/10 10:19 PM |
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