Comments on: What should be in a Comparative Market Analysis and how long will it be accurate? http://www.spencerbarron.com/2007/01/what-should-be-in-a-comparative-market-analysis-and-how-long-will-it-be-accurate/ Rants, Raves & Real Estate Tue, 23 Mar 2010 04:46:42 +0000 hourly 1 By: Realty Thoughts » Blog Archive » Comparative Market Analysis http://www.spencerbarron.com/2007/01/what-should-be-in-a-comparative-market-analysis-and-how-long-will-it-be-accurate/comment-page-1/#comment-165 Realty Thoughts » Blog Archive » Comparative Market Analysis Fri, 26 Jan 2007 14:45:02 +0000 http://www.spencerbarron.com/archives/63#comment-165 [...] Spencer Barron writes an excellent piece on comparative market analysis for individual homes. What makes it such a good piece is how he breaks down what should be considered in the estimate and why. [...] [...] Spencer Barron writes an excellent piece on comparative market analysis for individual homes. What makes it such a good piece is how he breaks down what should be considered in the estimate and why. [...]

]]> By: Spencer Barron http://www.spencerbarron.com/2007/01/what-should-be-in-a-comparative-market-analysis-and-how-long-will-it-be-accurate/comment-page-1/#comment-164 Spencer Barron Thu, 25 Jan 2007 04:54:21 +0000 http://www.spencerbarron.com/archives/63#comment-164 Shane, the problem is, Realtors don't NEED an appraisal when taking a listing. I have access to the same information that you do except deep down, I think pricing is more about the feeling a buyer gets walking in than analyzing the cold numbers of sold listings. What would help is a preliminary price range summary supported by data, not a full appraisal but a simplified second opinion of price. It would accomplish what you're saying and still appeal to the average agent and client. The problem is the cost of the appraisal.  There is no middle ground product,  I just need a price range not full on value target.  I guess I'd look into introducing a new product line to fill the void. Shane, the problem is, Realtors don’t NEED an appraisal when taking a listing. I have access to the same information that you do except deep down, I think pricing is more about the feeling a buyer gets walking in than analyzing the cold numbers of sold listings.
What would help is a preliminary price range summary supported by data, not a full appraisal but a simplified second opinion of price. It would accomplish what you’re saying and still appeal to the average agent and client. The problem is the cost of the appraisal.  There is no middle ground product,  I just need a price range not full on value target.  I guess I’d look into introducing a new product line to fill the void.

]]> By: Shane http://www.spencerbarron.com/2007/01/what-should-be-in-a-comparative-market-analysis-and-how-long-will-it-be-accurate/comment-page-1/#comment-163 Shane Thu, 25 Jan 2007 01:05:59 +0000 http://www.spencerbarron.com/archives/63#comment-163 Good points made here, I agree with much of what you are saying in the fact that the Denver market is similar to most markets in the Midwest and homeowners are universal in mentality. I like to communicate to real estate sales professionals that it may be to their advantage to order an appraisal in the early part of the listing relationship. In situations where the homeowner feels that they know what the property will sell for, an appraisal can be used to educate the client while preserving the relationship should the broker or agent have a different idea in listing amount. By ordering an appraisal the sales broker or agent now has a tool to communicate to the property owner based on an unbiased third party aspects to the current market. Requesting an appraisal up front in the listing process also shows the homeowner and future client that, this sales professional offers service and will do what they need to in order to sell the property. An appraisal will give the agent better ability to commit the listing and reduce the tire kickers that consume a large part of broker’s and agent’s time. Those who are serious about selling their property will be willing to incorporate methods and tools to do the job even if there is a minor cost involved. Meanwhile an appraisal gives the listing agent a base to work with in keeping the listing and limiting the risk of the listing going to a competitor who may us a promise and list high sell low tactic to gain listings. There are other advantages in ordering an appraisal upfront also. Most see this tool as an unnecessary cost when it may be better to set the mind frame of a appraisal or even home inspection as a cost of the doing business / operational cost. Besides there are many ways to deal with cost of real estate services businesses when in a supportive role. Other issues that sales professionals will list are the loss of commission by an appraiser coming in low, but with the other option being an over priced listing of 10 percent to 20 percent, how much commission is made on a doomed listing where the price was set to satisfy a homeowner or to gain the listing in the first place. Last but not least the real estate sales professional needs to order a Listing Appraisal and clear the thought of appraisers being low because they only do Refinance Appraisals. Good points made here, I agree with much of what you are saying in the fact that the Denver market is similar to most markets in the Midwest and homeowners are universal in mentality. I like to communicate to real estate sales professionals that it may be to their advantage to order an appraisal in the early part of the listing relationship.

In situations where the homeowner feels that they know what the property will sell for, an appraisal can be used to educate the client while preserving the relationship should the broker or agent have a different idea in listing amount. By ordering an appraisal the sales broker or agent now has a tool to communicate to the property owner based on an unbiased third party aspects to the current market.

Requesting an appraisal up front in the listing process also shows the homeowner and future client that, this sales professional offers service and will do what they need to in order to sell the property.

An appraisal will give the agent better ability to commit the listing and reduce the tire kickers that consume a large part of broker’s and agent’s time. Those who are serious about selling their property will be willing to incorporate methods and tools to do the job even if there is a minor cost involved.

Meanwhile an appraisal gives the listing agent a base to work with in keeping the listing and limiting the risk of the listing going to a competitor who may us a promise and list high sell low tactic to gain listings.

There are other advantages in ordering an appraisal upfront also. Most see this tool as an unnecessary cost when it may be better to set the mind frame of a appraisal or even home inspection as a cost of the doing business / operational cost. Besides there are many ways to deal with cost of real estate services businesses when in a supportive role. Other issues that sales professionals will list are the loss of commission by an appraiser coming in low, but with the other option being an over priced listing of 10 percent to 20 percent, how much commission is made on a doomed listing where the price was set to satisfy a homeowner or to gain the listing in the first place. Last but not least the real estate sales professional needs to order a Listing Appraisal and clear the thought of appraisers being low because they only do Refinance Appraisals.

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