Post # 1
My husband and I went and looked at a home we like. It’s been on the market since June and has rapidly been nose diving in price. According to the seller’s agent, they are moving to Florida (We’re in CT so they probably want to bail before the snow comes) and are motivated sellers. Their list price on the house is currently 350,000.
I went to see it with my agent last night and she said she’d send us comps, but the comps she sent us were like 3 enormous McMansions in expensive subdivisions 5 miles away… We’re talking like 20 years newer than the house we’re bidding on, with nicer landscaping, more upgrades, and going for like a half million dollars. The subdivision averages homes in the 600-700k range.
I looked for homes sold in the area and found them to all be about 320-350 range that were as old as our home with similar beds, baths, square footage, condition and acrage that sold in the last year.
When I asked her about it, she confirmed that the comps are done by the computer and must have missed them. Were your comps computer generated or did your agent actually look at what homes nearby sold?
The seller’s agent works for the same Real Estate company as my agent. I’ve never been terribly skeptical of my agent before, but I’m suddenly getting a little weirded out that maybe she’s trying to nudge us into thinking the house is worth more and bidding at asking price.
Post # 3
I would not be happy because that means she didnt look at them before sending them over, even if they were computer generated. She doesnt check her work?
I dont know if our comps were hand pulled or not, but they were spot on. The agent at least vetted them.
We also got a book and spreadsheet of the comps and all the important points of interest to compare to the house we were interested in buying. It was very thorough and impressive. She also had an executive summary explaining what she thought was a fair price to pay for the house as well as a suggestion of what she though we should go in as a first bit and why.
Post # 4
- Wedding: October 2011 - Bed & Breakfast
Our comps were pulled by our agent, not a computer program. And when doing value assessments, the bank’s appraiser will use comps from a much closer radius, if at all possible. So I do find it a bit odd that your agent would 1) use such a wide radius unless there was an absolute lack of sales closer in, and 2) not review the comps for appropriateness before sending them over.
Post # 5
While I know Agents use computers that was extremely lazy on her part. My Agent went through and give me comps and even went to the open houses i the areas and had seen them in person, because it’s job as she works frequently in the area.
I don’t know her motivation it could be wanting to jack the price up, it also could be pure sheer laziness. Did she apologize or elbarote in any way? I personally wouldn’t trust her to continue working with me esp if she laid back about her huge blunder.
By the way Kudos for doing your research!
Post # 6
@irishphoenix: when we tried to sell our house there was a wide range of ‘comps’ because SO little had actually sold that there really wasn’t much that I felt fit our property…
I would say that anything that is 20% more or less square footage than your house really is not a comp and you shouldnt use it for your offer stratagy… We ultimately priced our house $10,000 higher than I thought our best offer would be and actually we got a full price bid the first day on the market… Now the whole neighborhood is using our house as a comp and prices in the neighborhood have gone up but houses still aren’t selling – so they must not be true comps…
Id go with your gut and put in an offer that you are comfortable with. If you are doubting your agent drop them ASAP and find someone else! I loved our agent, but yo think I did 99% of the work both buying and selling our house… I researched the market, I knew the do’s and don’ts and I think that ultimately made the process much better for us… G/L
Post # 7
I’ve never used an agent for buying OR selling a house!
But I generally only look at recently sold in the same school district, within a hundred or two sqft, and built in the same decade.
Post # 8
@TwoCityBride: I think she was just being lazy. I mean her comps were for homes way over even the asking price. It was very bizarre. She claimed that the comps I pulled were not truly “comparable” because the ones I pulled are not colonials. But when I looked for what our home was listed as with the town, it’s listed as a modified cape, not a colonial. So I have no idea what the heck she’s talking about LOL
We’re putting in an offer for what we feel is fair for the area and the home, regardless of what she sends us. I can’t quite tell if she’s being lazy, incompetent, or shady.
She did say she’d hand pull comps for us after I called her on it, and sent a bunch of comps that made more sense and aligned with what I was seeing.
Normally she’s pretty good about not setting off my BS radar..so we’ll see how things go from here. I’m not afraid to deep six her if I have to.
Post # 9
Our realtor accidentally gave us the wrong squarefoot range for our CMA initially, but it was just the size range immediate below, so some were still within 100 sq ft. He did send us a new set the next day after he realized his mistake.
They were all in the same neighbourhood, but the oldest houses here were built in 2000 and there are still new phases, so there’s been lots being bought & sold recently.
Post # 10
What were the sale dates on the Comps she sent? I know that my realtor specifically told us he had trouble with comps because there wasn’t much sold in the same neighborhood in the last couple of months and the market had changed drastically in the last year. With the way the market is rebounding, comparables over 3 months old may not be that comparable (depending on the market)
Post # 11
Our comps were pulled by our agent. I’d be a bit suspicious that a computer just happened to “miss” all the homes that were similar, and just happened to pull up more expensive homes.
Post # 12
@irishphoenix: It’s likely that your agent was trying to emphasize what a great deal the home is. $350k in a neighborhood of $600-700k houses sounds like a very good deal. Even if the home needs any upgrades at all, your return on investment will be worth it. However, when you bid, go with your gut. Your real estate agent is not going to pay the mortgage 🙂