Agent gave me comps

[Fernando]

I had this topic before but this time it's different.
Agent gave me comps and were higher than purchase price.
There was one a year ago and it was higher so he said this should be easy to appraise.

Yes, based on comps I can easily appraise to sales price.
Problem is subject had been on market for a longer time and original list price reduced and still lower than the comps.
I can see the market is changing with prices going down.
Hadn't experienced such a market in a long time.

 

[Lindseyw]

RE comps are a joke. Yes they are considered but it’s comical how they get their numbers. I usually see agents comp selection being WAY above subject GLA and absolutely no bracketing.

 

[Fernando]

Agents grab comps as far as a year and they convey them to the buyers. Depends whether agent is good in getting appropriate comps which many are not.
Agent today used a $/sf for a comp to adjust to subject and should be worth lot more. That method is new to me.

 

[Lindseyw]

Agents grab comps as far as a year and they convey them to the buyers. Depends whether agent is good in getting appropriate comps which many are not.
Agent today used a $/sf for a comp to adjust to subject and should be worth lot more. That method is new to me.

I hear about the per sf$ all the time. It just lack of education or laziness, in my opinion, for valuing a building.

 

[J Grant]

I had this topic before but this time it's different.
Agent gave me comps and were higher than purchase price.
There was one a year ago and it was higher so he said this should be easy to appraise.

Yes, based on comps I can easily appraise to sales price.
Problem is subject had been on market for a longer time and original list price reduced and still lower than the comps.
I can see the market is changing with prices going down.
Hadn't experienced such a market in a long time.

I ignore their comments of thing such as this should be easy to appraise. Just don't say anything, in response is best. I take their sales ( which they call comps ) and may or may not use any of them. It is common for agents to use superior sales as comps to justify a price. Which they are allowed to do as agents, but it does not turn them into appraisers.

 

[alebrewer]

I've always been interested in procuring the sales used by RE agents to develop their price point. It helps me understand their thought process. Agreed that PPF generally doesn't work (unless you're comparing apples to apples), but I don't think it's a result of laziness. I think it's more a result of improper training. Kind of like appraisers using $30/foot adjustment factor, regardless of price point or size of home...

 

[J Grant]

Agents grab comps as far as a year and they convey them to the buyers. Depends whether agent is good in getting appropriate comps which many are not.
Agent today used a $/sf for a comp to adjust to subject and should be worth lot more. That method is new to me.

Isn't if funny how agents get to play appraiser, but we don't get to play RE Agent ( unless we get a RE agent license )

They don't invite us to a listing presentation to tell them how to list, yet we are supposed let them act like appraisers and tell us what comps to use, what adjustments to make, or why their method of gross $ per sf is a thing.

Most of their "comps" are a waste of time. Occasionally they find one that I might have missed to consider. But when they hand me a huge packet it becomes a real waste of time to read them. They are not trained to value the way appraisers do, though they get a rough version of it, most quickly move on to just picking comps that support a sale price. The interesting thing we can deduce from their list of comps is buyers can believe higher price of superior comps means they are getting a good deal, when in reality they can be over paying.

Agents will almost never include a very similar house sale that is a great comp if it sold for less than their SC price. .

 

[ramrcdk]

Great! I accept information which May or not be of appraisal instructions or SOW, or guidelines, or best of bracketing, DOS, or, or, or or, ______, etc.
And there are times, I will communicate, generically. " The specific lender has multiple pages of specific instructions for an appraisal. "
Tends to leave them thinking. And Communication aids in "that statement is true" and in educating that the appraiser is not free to do whatever they want to. However, there are times I can feel the emotional-heat, accept the input, & say nothing. It's a gut- Per Circumstance Situation.

**Realty Reality: THEIR motivations of Representing The Buyer or Seller are completely different and also due to signed agency contracts for
Their Best Efforts.

Accept Info' Scenarios: 1. when the appraiser hears from the borrower's lender that all input was rejected. 2. where ( I ) have reviewed their input & documented in the work file "why" not found "best" for use. 3. Perhaps, Helpful for a possible Appraisal Dispute -Value Challenge...later requested by the lender, and for the buyer or seller, affected agencies, & even an attorney.
YEP, has happened. Specific Instructions for this is on the Fannie Mae Web Site or found in previous Threads of past interest.

 

[Fernando]

I ignore their comments of thing such as this should be easy to appraise. Just don't say anything, in response is best. I take their sales ( which they call comps ) and may or may not use any of them. It is common for agents to use superior sales as comps to justify a price. Which they are allowed to do as agents, but it does not turn them into appraisers.

I controlled myself in responding back. You know that's hard for Fernando.
I wanted to say subject was listed at higher price and now reduced (below comp prices). How can you say subject's purchase is a bargain?

 

[J Grant]

I controlled myself in responding back. You know that's hard for Fernando.
I wanted to say subject was listed at higher price and now reduced (below comp prices). How can you say subject's purchase is a bargain?

Don't even try to figure it out!
RE agents are sales people and talk and think like sales people -and will say things that are almost comically absurd. The tricky part is they also can have some valuable information, so one has to be able to tell the differemce