Posted by Fern (SoCal) on April 13, 2002 at 14:50:26:
Posted by Fern (SoCal) on April 13, 2002 at 14:50:26:
Comps CD Data, DataQuick, Realtors and lies - Posted by Jeff, So Cal
Posted by Jeff, So Cal on April 13, 2002 at 13:05:49:
Need so help on doing comps. My realtor and I have located quite a few homes that are in need of significant repair. A good friend (General Contractor) of my mine is helping me with the repairs estimates so I have faith in those numbers, but my comps compared to my realtor?s comps are way off. I?m thinking maybe I should get an opinion of an appraiser just to triple check.
For instance using DataQuick and CD Data for a 3/2 1302 sq. ft. I come up with a range using 20 comps whether I use a radius, APN or Tract search. Most recent sales in the search in including March 2002
Low Med High
169K 180K 209
Where as my realtor is using the MLS recent sales and pending sales
Low Med High
180K 195K 233K
I asked my realtor why the difference in our comps? He said that I?m not factoring in the most recent and pending sales. I know it is a hot market, but a we are off by 7% to 10%. That is an increase of 7% to 10% in one month.
Thank you very much
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by ShermanDC
Posted by ShermanDC on April 14, 2002 at 24:53:28:
Go to http://www.haines.com/dircd1.htm
Find a sales rep in your area and sign up for their Haines Criss+Cross Real Estate Plus product subscription which comes to you everymonth with updated sales for your area (political jurisdiction like a county or city) on a CD ROM.
Get the rep to show you how to use the “AutoComp” plus map feature. With this feature you can generate comps within radii of less than a tenth of a mile with a map side by side the listings to actually see where these properties are in proximity to your “subject property”.
Hope this is helpful.
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by Raiko
Posted by Raiko on April 13, 2002 at 17:35:00:
It could also be that your Realtors use of Pending sales is inflating the average price. Pending sales in the MLS aren’t actual sales prices but rather the list price. Most MLS’s do not reveal the actual selling price until escrow closes. That means that his averages may be inflated on the high side since most sale prices are slightly less than list prices.
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 13, 2002 at 17:11:30:
Jeff, you are getting a few responses, but both you and your agent need to nail down the price you want to buy for and the price you want to sell for. And depending on how long it takes for you to rehab, will the climate change and affect your selling price?
With your Low/Med/High values of 169K/180K/209k, what price do you think you should buy for and what price do you think you should sell for?
With your agent’s Low/Med/High values of 180K/195K/233K, what price does your agent suggest as a purchase price and what price is suggested for selling the property after rehab?
Sit down with him and show him your comparables your prices you came up with, and have him show you his.
You have a difference of $40k from low to high, and he has a $50k difference from low to high; however you both might end up with the same value for purchase and for the sale. You have not disclosed these to us who are reading these posts, so we do not know the whole story.
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by David
Posted by David on April 13, 2002 at 16:56:44:
The actual value is a little higher than your numbers because values are rising in So Cal. And, at the same time, the actual value is a lower than the MLS numbers because using pending and “recent” sales skew the true numbers a little high since some of those “sales” will never close…buyer not qualfied, or too high to appraise.
It’s common knowledge that MLS numbers are less accurate and don’t include all the sales, which may explain some of the difference.
Like you, I think it’s silly to think an agent would pad to make a higher commission, it doesn’t earn her much more money and it’s bad business.
I would go with your data, especially with so many comps.
Re: Not lies, it could be a rotten orange. - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 13, 2002 at 14:02:51:
Your data may be all ‘recorded’ data, the agent might only be using ‘mls’ data. How far back are you pulling data, and how far back is the agent pulling data? And last but not least, what comparables are you pulling up, and what is the agent pulling up? Are they apples to apples, or do you have a few oranges in the bunch?
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by Gary
Posted by Gary on April 13, 2002 at 13:53:36:
Realtor may very well be selecting comps that will pad his earnings on the deals. He won’t tell you this but he is going to look out for his best interset, not yours when it comes right down to it. What’s your knowledge and instincs telling you?
Wouldn’t hurt to have a back-up realtor to do searches.
This could be used to Dbl-check each other and protect your interest. A form of “checks and balances” you could say.
Of course, you don’t let each of them know your doing this. After all, its your money being spent here.
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by Al-So Cal
Posted by Al-So Cal on April 13, 2002 at 13:38:06:
Jeff - shame on you! As an investor you should pick an
area and know it like the back of your hand or better.
I would never consider listening to a realtor or an
appraiser to see value.
Have you ever heard of a wealthy appraiser? And most
realtors are focused on covering large areas and earning a living.
To price a rehab-take some notes and go to Home Depot
etc. Good Luck.
Re: Comps CD Data, DataQuick, Realtors and lies - Posted by David H
Posted by David H on April 14, 2002 at 13:06:11:
This would be my guess - pending sales don’t mean anything. In any event, tell your Realtor you’re more comfortable with your own comps, and she’ll have to accept that if she wants to work with you.
Re: Not lies, it could be a rotten orange. - Posted by Fern (SoCal)
Posted by Fern (SoCal) on April 13, 2002 at 14:45:44:
Ok first off I want to address the statemnet that was made by someone who said that the realtor is trying to pad the deal. I’m sorry but a $20,000 up on the price is not a big enough difference in teh commission for the realtor to risklosing a client. Maybe he’s just trying to make you happy. Maybe he knows the area. When I pull comps I use both the MLS and the titel search. (dataquick) The MLS is great because you can get an idea of the condition of the house and know if the houses that sold for the lower prices needed some TLC. In this market today (at least in my areas (San Gabriel Valley). If a house is completely rehabbed it sells in about one week if the price is about 5%-7% above market values. Also the most recent sales are the ones that count. The mls also shows how many days each house was on the market before it sold. This can tell you alot about the area. I only like to do searches of .5 mile radius if I don’t know the area like the back of my hand. If its a city like West Covina where I know just about every neighborhood then I will do a more broad search. If you want give me an e-mail and I will do my own CMA for you. For free of course. I’m willing to help any CRE Investors.