Pulling Comps

[c w d]

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, windows, exterior paint, custom deck, both baths remodeled from the studs with slab granite, slate, travertine, heated floors, kitchen appliances, garage door, 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.

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.

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 ???

Generally I do not concern myself with updates/upgrades until I inspect a home. I go out with enough potential comparables to make my determinations at the time of inspection. The sad truth is what some people call a rehab or update is little more than window dressing. The only upgrades I really concern myself with before inspection is increased size due to additions or garage conversions.

It's during inspection that I run the home owner through a list of upgrades. It amazes me that some owners have to be lead through the process of determining what of their home has been updated/upgraded and if any recent maintenance of substance has been done. For instance, I'll ask about the floors, interior paint, cabinetry, heating and cooling, appliances, etc, etc, etc if I suspect something looks like it's been replaced/updated/upgraded in the past few years. You'd be surprised how often I'll get a home owner that says "Oh yeah...forgot about that. For me it makes little sense to go over all that over the phone without having seen the home first.

 

[sbb04]

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.

Yeah, and a third reason is you've at least given the opportunity is give some input, whether it's relevant or not.

 

[Frederick]

My assistant (12 yrs on job) served her two year internship and completed all the education necessary to become an appraiser but decided against it (homeowners creep her out). She does a very detailed interview about the property when she sets up my appointments which allows me to have a good idea what I am going to see and enables me to pull relevant comps prior to inspection. I also carry a laptop in the car so I can pull comps onsite if necessary.

When I get to the home I have a reduced version of my license with photo laminated on a lanyard around my neck. I have a strap over my shoulder with a flashlight, Disto, multi-tool and circuit tester. I also carry a small tape recorder and ask them to give me a tour of the home pointing out any features and improvements that I will record so I don't miss anything. I take lots of photos. I also take whatever information, comps etc. they offer. Before I leave I ask them if there is anything else about the property that might have a significant effect on value. I also ask if they know of any recent nearby sales so I catch non-MLS sales.

I have basically three sets of descriptions. One from the phone interview. My onsite written one and the tape recording. The tape recorder keeps people on their best behavior and gives the property owner something to do as well as gives them a feeling that they have gotten a "fair shake" and have been heard.

 

[Gregory Beck]

I say this get a realtor put your house up for sale list all the improvements and see what offers you get then you will know what your house is worth.

 

[OSU Beavers]

Yeah, and a third reason is you've at least given the opportunity is give some input, whether it's relevant or not.

Owners usually have a value "in mind" based on overpriced current listings. They say "The house down the block is going for and mine is better so it should appraise for more". To which I always ask "When did it close?"

 

[Jack Straw]

My assistant (12 yrs on job) served her two year internship and completed all the education necessary to become an appraiser but decided against it (homeowners creep her out). She does a very detailed interview about the property when she sets up my appointments which allows me to have a good idea what I am going to see and enables me to pull relevant comps prior to inspection. I also carry a laptop in the car so I can pull comps onsite if necessary.

When I get to the home I have a reduced version of my license with photo laminated on a lanyard around my neck. I have a strap over my shoulder with a flashlight, Disto, multi-tool and circuit tester. I also carry a small tape recorder and ask them to give me a tour of the home pointing out any features and improvements that I will record so I don't miss anything. I take lots of photos. I also take whatever information, comps etc. they offer. Before I leave I ask them if there is anything else about the property that might have a significant effect on value. I also ask if they know of any recent nearby sales so I catch non-MLS sales.

I have basically three sets of descriptions. One from the phone interview. My onsite written one and the tape recording. The tape recorder keeps people on their best behavior and gives the property owner something to do as well as gives them a feeling that they have gotten a "fair shake" and have been heard.

I like everything but the lanyard (business card works for me) and asking THEM to give me a tour. I have a way I like to examine the home and if they want to come along they are welcome. If not, at the end I briefly explain my notes and ask them if I missed anything.

I feel that we are service based and without the person who needs the report, we wouldn't be employed. I basically like people and even though most folks think their home is worth more than it is, I don't fault them for it.

I almost always get feedback that I was thorough and courteous. When I do an inspection I represent my client in the eyes of the homeowner and I don't take things for granted. Especially in these rough times.

I will most likely disappoint the homeowner once the report is completed, but doing it in a way which shows confidence and respect goes along way in my book.

 

[Green Hornet]

Update:

Appraiser arrived at 2:25, left at 2:40. Maybe said 2 words, did not ask any questions and did not say good bye before leaving. If I were the general public, I would have a very poor opinon of the appraisal process.

Did I mention that this is FHA. No systems checks, no crawl space or attic check.

I guess I try too hard and need to start cutting corners, just joking, that won't happen.

Per his assistant, he has been doing FHA for 15 years so I assume he knows what he is doing. It will be curious to read the report.

 

[EVAUSA]

#1, I confirm GLA. I dont know how many times I've brought along my "best" comps to find out the subject has a 1000 sq. ft. addition! When confirming GLA, I ask for a list of upgrades. I dont like to pick my comps in the field because want everything ready when I leave, GPS, a printed map, list of comps, you know!

 

[incognito]

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.

WHAT???????? Please do not make me comment on this...

Regarding doing anything comparable related prior to inspection; NO! What is the big deal about going back out to see the comps? Heck, I have seen most of them before, anyway. I do not want ANY pre-conceived notions of ANYTHING value related prior to seeing the subject. How in the world could I do comparable research prior to knowing what my subject is? County records and MLS representations of a subject are rarely accurate.

 

[Bill_FL]

I do not pre-pull comps, because I dont know what is comparable before I see the property. Now, if I worked in areas like Ray M. does, 150 miles one way, I would pull everything that sold that I had not all ready driven by and taken pics of. But my area is small enough that I just go do the inspeciton, go back and write upthe report and shoot the comps the next day when I am in the field anyway.