Share your knowledge, bridge the gap . . .
As a newer agent eager to become the best darn real estate agent I can be, I am always reading, learning, watching. One thing I have learned very recently is that the methods a listing agent uses to come up with their "CMA" is very different from the way an appraiser arrives at their opinion of value.
Twice now, I have watched as more experienced agents have had to give their sellers the bad news that the appraisal came in below the contract price. I noticed that both agents used different comps than the appraisers did. And after looking at some of the differences, I realized that both agents had no clue what the appraisers look for in a comp.
The seller says, "but my agent said it was worth $xxxx!". The buyer says, "I'm not paying a penny more than the appraiser says it's worth!" The agents take to drinking because the deal fell apart. (not really, but it's tempting)
So for the sake of helping us all to be smarter listing agents, I was hoping you would answer a few questions:
- What are the most important things to look for in the comps?
- How close to the subject property should the comps be?
- How much difference in sq. ft. is acceptable? Also, are you looking at total sq. ft., or only above ground sq. ft.?
- How many years age difference is acceptable?
I appreciate your comments.