Did the Home Seller Get a Good Price? The Absolutely, Positively Single Best Way to Tell

“Outlier” Comp’s — Both High & Low

Wanna guess the single best way, bar none, to know for sure the Seller got a (very) good price for their home?

It’s not whether the house sold especially fast, for full price (or higher!), or even received multiple offers.

Give up?

It’s when the listing agent (representing the Seller) receives a phone call from an appraiser a few months after the sale closed, perplexed about the home’s seemingly too-high selling price.

Perplexed Appraiser

There are only two things that pique appraisers’ interest: 1) Comps (“Comparable Sold Properties”) that appear to have sold for too much; and 2) Comp’s that appear to have sold for too little.

When that’s the case, appraisers will contact the listing agent to get the scoop.

And a good, veteran agent will give it to them.

Statute of Limitations

Of course, the majority of the time, appraisers can find three Comp’s that support the sales price of the property they’re trying to value.

So, there’s no need to call the Realtor who sold one of the Comp’s.

Too, such calls are time-limited: after more than six months have elapsed, a sold home is disqualified as a Comp because market conditions are presumed to have changed.

That leaves perhaps 10% – 15% of home sales where the price is an outlier — at least until the agent can provide the explanation(s) . . .

P.S.: Whenever I field such a call (as I did the other week), want to guess who I call next?

My client!

See also, “Why Appraisers Call Realtors, Not the Other Way Around“; and “Cultivating Good “Appraisal Karma.”



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