Pulling Comps

[Elliott]

Green,
I usually print out sales once or twice a week, put the new ones in a folder
(non-computer) by area. Some areas I might be in once a month, other's once a
week. Its a tickler system. Some sales just stay in the folder, get old, cause
I never needed them, and when they get to about a year, I just throw them out.
I very, very, very seldom can be dinged by realtors that I 'missed' a sale.

 

[Mike Boyd]

I appreciate.....and I will ask.....if the homeowner tells me of major additions or a pool, or anything significant. However, things like new appliances, roof, painting, floor coverings etc., I will see when I get there. In my area, most homes get a work over prior to being listed. A list is nice to have. If you know of a sale that did not go through MLS you might mention it to the appraiser. If public records do not list the SF, age, room count, garage, lot size, etc. I will ask when I make the appointment.

 

[OSU Beavers]

On comps, I always ask the owner if they know of any recent sales in the area for two reasons. First when they start telling me about the Johnsons who moved in three years ago I can tell them that the sale is too old for the lender and second if the house next door just closed and recorded FSBO yesterday the county will not post the sale for a week. Nothing worse than missing the sale next door.

 

[Michigan CG]

It is always weird to be on the other side of the fence. I am in the proces of refinancing our 24 year old home. Get a call from the appraiser's assistant to set appointment. So far, so good.

We have done many updates and upgrades in the last 12 months, some of the quality is for our own enjoyment and is outside of what the market supports, but most is what was needed to bring it back into 2008. Updates include roof,It is my opinion that homes should have a good roof. If there is a good roof no adjustment. If the roof is bad, negative adjustment. windows, again, the windows need to be acceptable to a typical buyer. Most buyers do not test windows, some do, but most do not. exterior paint no added value, how can anyone add value from MLS or public records data. , custom deck, both baths remodeled from the studs with slab granite, slate, travertine, heated floors, wow...over improvement in the markets I know, but might be different in your market.kitchen appliances, garage door again, you should have a good garage door that is functional, no added value, just the cost of owning a home. Those with bad garage doors might get dinged $500?, etc.

I asked if she wanted to know about the updates to help his comp selection and she said to just tell him at the inspection. That I totally disagree with. I always ask about improvements and ask the homeowner to write them out for me prior to inspection so I can have them. Mostly they are unimportant, but it tells the homeowner that I am considering everything even if the "improvements" or "updates" add no value.

Ok, maybe I am weird, but I like to know a bit about the subject prior to pulling comps. When I am setting the appointment, I always ask about updates. I agree, but remember, it is your house, and we all know that we (homeowners) have the best house on the block!!!

How do the rest of you deal with this. Do you run off 20 comps and then pick at the inspection. What if non of the comps you pulled are really comps due to erroneous assumptions and lack of information about the subject? Do you go back out or ???

I would suggest you are at the inspection and answer all questions. When the appraiser leaves, no matter how much inspection is done (meaning you think an adequate or inadequate job was done) you give the appraiser your business card to him/her so they can call you if they have any questions. I think that will get you a well researched report.

 

[Green Hornet]

Timothy,

Thanks for the reality check about the updates. I agree, all of the structure should be functional. It is just an issue of if the potential buyer, the market, wants to have a roof they know is good for twenty years or just 2.

I know that some of the improvements are outside of what the market supports and do not expect to get rewarded for that by the market. We plan on being here for many years and when it was neccesary to remodel, the marginal cost of the "good stuff" was worth it.

Thanks to all of you for your suggestions. I feel that being on this side of the fence will make a better appraiser of me, or at least more understanding of what the borrower is going through when I am in their castle.

By the way, I do have the best house on the block

 

[Michigan CG]

Timothy,

I feel that being on this side of the fence will make a better appraiser of me, or at least more understanding of what the borrower is going through when I am in their castle.

By the way, I do have the best house on the block

If you really want to educate yourself, sell your house and buy another!!!

I think I learned a lot this past year selling my house and buying a new one in two different markets. Selling I got to hear about all the things people didn't like about my house (jerks!). Buying was a different experience altogether since the market up here is in a sub-prime, REO, foreclosure mess.

I did extensive research for a long time, watching the market here. It was eye opening to say the least.

 

[Lawrence R.]

I don't pull comps prior to inspection. After inspection, I check the file
in my car and see if there are any new sales, similar to the subject I
just inspected, which are close to the subject. I don't need to know
about all your upgrades prior to inspecting it.

I don't pull comps prior to the inspection. I do always ask the H.O if there are any recent major repairs/purchases they have made, etc...

I actually give them a little check sheet type thing to keep them busy--hand it to them and then go measure. Keeps them from talking your ear off too.

And then leave a card for them to call me if they think of anything that we may have missed.

 

[xmtpedprl]

If you don't "pull comps" before you visit the subject then what do you photograph while you're out in that market?

Please don't tell me you rely only on MLS photos, especially for FHA jobs, as you'd miss potential external obsolescences, etc.

I hear this from time to time and I just don't get it. Not only would I have a folder full of them, but actives, too, and get every photo unless the humanoids just won't move for me.

Dave...

 

[Mztk1]

I pull my own comps the morning of the inspection or night before. If someone offers me their own I will gladly accept but I never ask for them, nor do I prefer them. I note the upgrading and condition of the house the way a buyer would, I don't care about a list of upgrades with cost figures supplied by the owner. If it is notable that something was updated, I'll see it with my own eyes and then ask the owner directly about it. If the owner wants to go over upgrades he or she made, or provide me a list, I will give them my undivided attention. When I make my phone call to schedule an appointment I schedule an appointment and don't ask any other questions. If I pulled the wrong comps, or need others, I pull them up from my car - it is very, very rare though, to the point where if I forgot my computer I can almost gaurantee that I won't miss it.

When an appraiser has come to my house in the past, I didn't even tell him that I was an appraiser, nor did I leave clues around the house. I simply let him in, said I'd be outside by the pool, and when he was outside by the pool, I went inside to give him his space. When he left he didn't ask me any questions and when the report came in, it was about right in value. I got a copy of the report with my closing docs, but other then notice it was there I still haven't looked at it...that was about 5 years ago.

Reading the other responses, though, it isn't a question of whether I am weird or not, it is obvious that I am.

 

[Zero]

I always pull comps prior to the inspection...but it doesn't always work...LOL. Classic example...property listed on MLS as tri-level but turns out to be a four level with finished 4th level. Thankfully, it was only a couple of miles from my home office.

Amen on pulling comps in advance then being surprised. I do nearly all my work in the District of Columbia. Other than location, GLA and condition are the dominant features in urban appraising...and they vary in degrees and can vary drastically. How accurated are public records for GLA, let alone condition...Even if you do talk to the owner before going out, you still don't really know without seeing it. If I don't have recent listing with photos or a really good description, I pull 3 sets of comps based on levels of condition Oh, and I always check the aerial/birds eye view on maps.live.com for externalities.

As far as going back to the office to pull comps, then back out to the field, I use this wonderful new invention called wireless broadband. If you are anywhere near human civilization, it's great and not that expensive. Check the MLS, snap the pics and go home. I highly recommend a laptop and wireless broadband. New millenium, new tools. In the District only 3 days a week and don't need to go back. And get me outta the District before 1pm, please!