I recently had a friend that was refinancing. Waterfront property in the Harris Chain of Lakes, pool, new kitchen, over 2300 sq ft, ect. The bank appraiser did a drive by and said it was valued at $250,000. He called the bank and showed a bank appraisal that was done 10 months prior for $425,000. The bank sent the appraiser out again to actually go in the house. This time the appraiser was amazed at the home and what was not visable from a drive by. The figure was now $350,000. Still not happy he called me to do a CMA. Now this area, although does not have tailers, has some older homes and some new homes in excess of 1 million. When I did the CMA I was not able to comp to many in the immideiate area as not many have sold even in the last 12 months. I was able to COMP to other homes that were on the same waterway. I comped the home in the $395,000 to $415,000 range. He gave this to the bank. The admitted the appraiser was incompatent and sent out a new one that appraised the home at $399,000. Long story short is that many homes cannot be comped to other homes in the immediate area and need someone with experience to do the job correctly. Many areas of Florida are like that where very expensive are next to very inexpensive homes. I have seen homes in Lady Lake comped to homes in Clermont based on the home and general area. An appraisal is an opinion not a science. There are guidelines but it is not a science and you need to do your homework. You need to look at the homes that were used to comp yours and speak up. Get at least 3 comps from 3 different realtors then go from there.
Hope this helps.
Linda J Sears
Other than dealing with an area expert, It would take hours to come up with that same information and they should be able to get within 20%.
The reanson that the percentages are so big, is because in a declining market the number that they come up with could have changed or adjusted by the time the Buyer is found.
From January 1, 2007 todate, the 33050 has had 108 home sell, 8 commercial sales, and 23 vacant lots/boat slips. Activity in the key had pick up considerably in the last 10 days.
That's a good question. Your question is two-fold. The first question involves an area where you have 10 times as many listings as solds. Certainly, you have to look at the solds, but these comps can be tricky, because if you have 2 solds pitted against 20 similar unsolds, which have been sitting for months, which number do you give more credence to?
You've got to look at both, but in these situations I think you've got to consider the sold homes the anomaly, and the current, unsold homes a better indication when pricing the home.
The other question involves very expensive homes located next to mobile homes. This is common in rural areas, and in areas of transition. You've got different components to an appraisal or Realtor Market Analysis. The land is assigned value, as is the house. Deductions will be made for flaws, wear and tear, and even for othe neighborhood. So the mobile home next door will be considered.
Some comps are just more difficult than others. It's not a perfect science, but it is more than guesswork. Ultimately, the most important person in the equation is the guy who comes to the house with his checkbook ready to buy. That's where you'll find your true value.
I hope this is helpful.
Keller Williams Realty
Comps/appraisals are done with SIMILAR properties which have sold recently. Therefore, a million dollar home will not be compared to a mobile, even if it is right next door... I am not a REALTOR in the keys, but I know a fair bit about that market, and have many clients from there... If you are looking to sell, I suggest you find a local REALTOR with years of experience in your immediate area (referrals from friends and family are the best). He/she will understand all the variables of your area well, and should be able to provide a fairly reliable estimate of market value based on a CMA (comparative market analysis). Ideally a CMA is basically a "science" and not an opinion--but also keep in mind that medicine is an "art" and not a "science." An experienced opinion is sometimes needed. As for only 40 "solds" listed in Trulia--I love this site, and encourage you to post more--but, a local pro will be have access to the most current and accurate data. Best wishes!
Thanks for your answer.
I understand what you are saying but being within 12% give or take as you mention...is a 24% spread! Being in the area are you finding (as I have) that most sellers are having unrealistic expectations on price expecting prices that were common over the past couple of years? What are you finding as typical DOM in the homes in the 300-500k range?
All of the responses have credence and can be great answers for your questions. The best possible action you could do now is to interview two (2) LOCAL Realtors and receive counsel from them. They will know the local market, they will know when the 40 homes YTD have closed & for how much. They can perform due diligence finding what concessions were needed for those sales to reach a successful close. They can create a CMA as Bridgette spoke about and reveal if a greater geographical area was needed for comps as Marlene stated.
You are preparing to liquefy maybe your biggest single asset AND invest what could be your largest cash investment ever. I would encourage you to begin (if you have not) the interviewing process to partner with a professional Realtor.
Good fortune to you.