I'll Show You Mine, You Show Me Yours

By
Real Estate Agent with RE/MAX Elite 513.520.5305 www.LizTour.com SAL.2002007747

(it's a wire stripper!)

 

Did that get your attention?  Well what I REALLY want to talk about is comparables.

Comparables:  homes similar in features, size, etc. to a home for sale, usually comprised of SOLD homes to obtain pricing information.

And here's the rub, not all agents are equal at this type of analysis, and an inability to pull the ideal comps can be the death of a deal before it ever gets started.

If the listing agent overshoots with their selection, or just gives the seller the price the sellers wants and not what the market will support, buyers are going to continually offer LOW.  Or at least that will be how the seller will interpret the offer.

And if the buyer's agent pulls the lowest of the low from the comp pool, the buyer receives an artifical perception of what a home is worth. 

But this one time at band camp, a buyer paid $120,000 for a 4 bedroom home with a fully finished basement and a .5 acre lot, so I want that too!! 

Well buuuuudddddy, that home was a foreclosure with a flooded basement and next door to a heavy machinery plant running a 3 shift operation.   In other words, it's NOTHING like a normal home and can't be used for pricing purposes.

And what further complicates the situation?

Ego, both from clients and agents.

It's not that uncommon for a buyer's agent to ask the listing agent for comps.

It might be because the buyer's agent just isn't good at pulling their own information.

Or maybe they just want to poke holes in the selections from the listing agent to justify a lower price.

But IMO, it's unlikely there's going to me much shift in pricing opinion as a result of this I'll show you mine if you show me yours. 

If the buyer's agent realizes they totally screwed the pooch with their selections, they've got to go back to their buyer(s) and point out they totally goofed with their previous advice, and what agent wants to admit to a client they didn't know how to do their job?

And you can expect the listing agent to pull THE most favorable comparisons.  If there are 6 similar homes sold, you can bet the top 3 prices are what are likely to be used (and that might be spot on to do in a housing shortage market).

 

So ego aside, there MAY be a middle ground where buyer and seller can meet, as long as the agents don't muddy the waters too much.

There's only one way to find out, put the offer on paper and let the dance begin.

Serving Greater Cincinnati home buyers and sellers,

Bill & Liz aka BLiz

 

Posted by

Serving Warren County Ohio & Adjacent Areas

 

The Liz Spear Team of RE/MAX Elite
Elizabeth Spear, ABR, CRS, Ohio License SAL.2002007747

William (Bill) Spear, CRS, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

Search Homes:  Https://WarrenCountyOhioRealEstate.com

Our Website:  www.LizTour.com

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Rainmaker
3,513,945
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Liz and Bill - eye-catching post titles matter and so does explaining/understanding comparables as it relates to real estate.  True comparables are important and significant.  Not pie-in-the-sky in order to make a point or "buy" a listing or when attempting to negotiate a lower sales price.  Definitely no room for "fakery" either or any such sleight of hand trickery.  

Feb 13, 2020 04:58 AM #1
Rainmaker
2,750,558
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

There are so many angles to come at it from since it is not an exact science.  I always love it when my sellers think their home is worth less than I can show with the comparables and I end up getting more money than they ever dreamed of from the sale of their home!

Feb 13, 2020 06:57 AM #2
Ambassador
1,956,919
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Several years ago we had buyers send us two spread sheets of comps from the prior two years. They got them from Zillow. OMG, it took us a day to comb through each one and provide summaries as to why they sold for less. And, add the rate of pricing appreciation. Some had 10K in closing fees given my the sellers, some had other conditions not as desirable as our buyers pick, you get the idea.  At any rate, they really need to know they were getting the "best" price for they home they were purchasing. They did. 

Feb 13, 2020 07:24 AM #3
Rainmaker
1,418,066
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

This is one of the reasons I enjoyed working in a smaller market. I wasn't just pulling statistical comps. I had been in those houses. I knew whether they really compared regardless of the typical similar attributes, location, size, beds, baths, lot size, etc.  First hand knowledge is better than any computer-driven print-out.

Feb 13, 2020 09:48 AM #4
Rainmaker
780,360
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

And what further complicates the situation?

Ego, both from clients and agents.

and cluelessness. I had a guy last month say "I bought a [POS off highway property with just land value in another town 10 miles away that had been on and off market 10 years] for 150k so your 500k property on highway with 3600 SF of improvements I should get for 200k. Seller financed."

I told him fine, submit it, see what happens

knowing full well what would happen. LOL

Feb 13, 2020 10:51 AM #5
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

In the last month our MLS overhauled the CMA program that's built in and it's made them much easier and much more comprehensive.  Most agents don't even use it.  (as the president of the MLS I get to see the % of active agents using features).  

I can't imagine buying without seeing comps.

Feb 15, 2020 08:35 PM #6
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