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Answers (2)
- Rick Chumsae, "Rick Chumsae"
- Contributions:283
I'd add this word of caution:
Most CMA/BPOs employ the most recent 6 months of sales of like kind property in the same or like kind neighborhood. It is always possible that a preponderance of homes sold in the lst 6 months sold below market; this anomaly does not mean that the subject should also sell below market.
Agents and appraisers doing analysis need to keep their eyes wide open for flukes.
Another tripping point in changing markets is to look hard at recently sold properties and their Days On Market (DOM). Example: I was pricing a modest house and using the most recent comparable sales and some adjustments, the subject house looked to be worth $92,000 as-is. I noticed two things:
1) Months Of Inventory was at 0.9 MOI (well below market balance point of 6.5 MOI) indicating an amazing Seller's Market condition.
2) The prior sold comparables all sold within a week of listing.
These two factors led me to recommed to the seller applying a 10% adder to the list price. They did, listed at $102,500, and the house was sold in 2 hours at $104,000/cash/10 day close. During the fist day on market we recieved 7 other offers, two others were over asking price.
I took the long way 'round, but the dramatic value changes could be explained by the haphazard mix of comparable properties used as operands in the data.
Most CMA/BPOs employ the most recent 6 months of sales of like kind property in the same or like kind neighborhood. It is always possible that a preponderance of homes sold in the lst 6 months sold below market; this anomaly does not mean that the subject should also sell below market.
Agents and appraisers doing analysis need to keep their eyes wide open for flukes.
Another tripping point in changing markets is to look hard at recently sold properties and their Days On Market (DOM). Example: I was pricing a modest house and using the most recent comparable sales and some adjustments, the subject house looked to be worth $92,000 as-is. I noticed two things:
1) Months Of Inventory was at 0.9 MOI (well below market balance point of 6.5 MOI) indicating an amazing Seller's Market condition.
2) The prior sold comparables all sold within a week of listing.
These two factors led me to recommed to the seller applying a 10% adder to the list price. They did, listed at $102,500, and the house was sold in 2 hours at $104,000/cash/10 day close. During the fist day on market we recieved 7 other offers, two others were over asking price.
I took the long way 'round, but the dramatic value changes could be explained by the haphazard mix of comparable properties used as operands in the data.
- Scott Campbell Team, "Scott Campbell Team"
- Contributions:506
These are estimates based on the average in the area.. The Town is all over the board with regards to pricing. Older compared to newer construction,updates,size,bedroom counts and also the towns tax assesments are very low if the homeowner has lived in the property for 20 years etc.
A Realtor Market evaluation is what is needed to really look into what your home compares to in the most recent solds.
Market data that an agent can get will be very helpful in getting an accurate value of your current home.
Hope this make sense..
Scott Campbell
Remax United
414-331-7888
Why Zillow Zestimate value dropped so substantially?
Since the last estimate in 2009, for this in 2010, the overall market condition improved, but the estimates shows a significant reduction. It does not make any sense.
Please explain.
Regards,
RQW
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