Can Realtors underestimate a home’s value? - Posted by Jim Beavens
Posted by Jim Beavens on June 08, 1999 at 17:48:42:
Once again I’ve posted an unnecessarily long-winded question below with way too much info that nobody wants to sift through (and I don’t blame them). So I will condense my question into a more agreeable form:
I’ve found a vacant fixer house on the other side of town from where one would traditionally find fixers, in a higher-dollar area. The listing agent said that comps were all over the place, and the best she could do was narrow the after-repair value down to $169K-$189K. When I pulled some comps myself, I found 3 very close recent sales that range from $220K to $250K. I’ve driven through the immediate area and collected flyers from other houses for sale, and not one is asking less than $220K.
Whenever getting comps from a realtor, I expect them to be high, and base my offer on my own estimate of the area. But the fact that the realtor seems to be estimating too low has thrown me for a loop. When I work backwards from an ARV of $220K and come up with an offer that works for me, it’s closer to the listing price than any other property I’ve looked at. So now I’m second-guessing myself and getting nervous because I’m afraid I missed something.
I was just wondering if a Realtor could be this clueless about an area she was selling a house in (she has several other junkers listed over in the lower-income area; this is the only one on the west side).