Realtor Job Description (at least, THIS Realtor)

All Part of the (Ongoing) Job

If you went to your estate attorney for a will in 2016, then needed an update now, you’d expect to be invoiced for the new work, right?

Similarly, if your dentist put in a crown four years ago, then you needed a cavity filled today, you’d expect the dentist to bill you a second time, correct?

So, when a Realtor represents you in the purchase of your home in 2016, then you need their help refinancing in 2020, how much do you suppose it costs?

At least if the Realtor was this Realtor (me), the answer is: $0.

Low Appraisal 

That’s because I view helping out my former (and hopefully future!) clients as part of my job description.

In this case, a home buyer I’d represented four years ago got back in touch to say that their refinancing application was rejected, because their home appraised too low.

They asked if I could look at the Comp’s (“Comparable Sold Properties”), to see if I could tell what was going on.

I could, and I did.

Wrong Side of the Tracks Freeway

My conclusion: it appeared that the appraiser erred by including two recent, nearby sales that — even though they were less than a mile north — nevertheless were located in a much less expensive neighborhood, on the other side of a major freeway.

Unh-unh.

I sent my client the 2 “bad” Comp’s, plus 3 “good” Comp’s all located in their neighborhood along with my analysis, which supported a significantly higher fair market value for their home.

Did it work?

Stay tuned . . . 

See also, “Realtor Job Description 2019“; “Realtor Job Description — Part 2”; “Which of These Four Factors Are Relevant for Pricing a Home?“; and “More Than This, Less Than That.“

Plus: “Why the Neighbor’s Home Isn’t a Comp“; “Real Estate Bracketing — Advanced Beginner Version;” “The Science — and Art — of Doing Comp’s“; and “‘Bracketing,’ Explained.”



from RSSMix.com Mix ID 8230700 https://ift.tt/2RZQlLJ
via IFTTT

Comments

Post a Comment

Popular posts from this blog

“What’s the Highest Point in Hennepin County?”

Image
There sure seems to be some confusion on that, umm . . . point. I’ve now encountered at least three different properties — none close to one another — that all claimed that status in just the last month. For the record, according to Hennepin County’s website, it’s on Williston Road near High Point Road in Minnetonka — 1,131 feet above sea level. See also , “ Florida’s Tallest Point (and how to get there) .” from RSSMix.com Mix ID 8230700 https://ift.tt/2Pq1ndL via IFTTT
Read more

Estimating the Discount for a Busy Street (or Not)

Image
The Art of Comp Selection One of the trickier home features to account for in a Comparative Market Analysis (“CMA”) is a busy street. For a family with little kids, a busy street may very well be a deal breaker — in which case the discount is theoretically infinite. At the other extreme, an investor looking for a rental property may see the location as a plus: free advertising! Of course, not all busy streets are created equal: depending on how far the home is set back; elevation differences; the individual home’s layout; and even landscaping and other topography, and the noise level/loss of privacy can vary significantly. Two Strategies Faced with so many variables, Realtors and Appraisers can always simply choose an average discount — say , 10% off. Strategy #2? Choose as Comp’s (Comparable Sold Properties) only homes that are also located on busy streets. Even better: the same busy street. Then, there’s no need to make any adjustment, because all the home...
Read more

“Are You a Realtor?” “Why, Yes I Am!”

Image
“There Goes My Realtor!” Admittedly, the intended effect is for clients who see me in and around the neighborhood where I live (by Cedar Lake in Minneapolis) to see my car on the road and say, “There Goes My Realtor!” But, my custom license plate (above) is also a conversation-starter when I’m parked. Like today, in Linden Hills, where a builder who has an upcoming listing saw my car and asked if I was a Realtor. I know what to do from there . . .  from RSSMix.com Mix ID 8230700 http://ift.tt/2glixp5 via IFTTT
Read more