Appraisal Value & Realtor

6 Replies

Hello all! I'll start off by saying, I've always had mixed feelings about realtors, so please forgive me if you are one. It's soooo hard to find a good one, which is why there have been times in the past where I did it all on my own with no realtor and it went very smoothly. However, I have a friend who just became a realtor and I'm big on supporting friends and their endeavors so I am supporting her.

The homes within a 1 mile radius that are comparable to the home I just flipped and am about to put on the market are selling for the price I want to list mine as. However, my realtor continues to focus on the prices of homes whose rehabs are not even comparable to mine. She's wanting to do a pre-sale listing to see if we get an interested buyer and they have their own appraisal done so then we'll know for sure.

I am fine with this but my question is, why is she still focusing on the homes with the lower values with lower grade rehabs when there are enough homes with similar comps and similar rehabs to mine that we can stay focused on instead? Any insight would be wonderful!!! Thank you :)

When did the other properties sell? They need to be within 6 months of your contract to be used for an appraisal.

Ask him or her? Is your market softening? Afraid of over-pricing and not getting showings? (a lot of flippers price slightly under market to sell fast). Your property has some non-curable fault that makes your property less desirable than your preferred comps but on par with the ones being used? If not, go with your gut.

To get your friend out of the equation, request a 3rd party for an opinion from an appraisal company.  Do not focus on the rehabit items. The adjustment for an original kitchen vs brand new one can vary little. Find regular homes on the market as bench mark not rehab homes. It takes years of practical experience to be accurate. 

Why do all flippers feel their homes are worth 20% more than the current high end retail market value, and get so shocked when the appraisals do come in low?  

Regardless though, she works for you, and at the end of the day, you're the boss and she should do what you want her to do..  Not sure why she wouldn't, unless she felt yours wasn't up to the standard that the current homes are selling for?  Or she has no idea what she's doing?  Thats probably more likely..  

Thanks everyone! Appreciate your insight and I appreciate the realtors who have responded also! She is doing as I ask (I hate to sound bossy when I say that lol). I too wondered it if had to do with her being new and not knowing what she's doing but that's the risk I took since she has only been a realtor for about 2 months now. I love her work ethic though and that she's a go getter so decided to put my trust in her. House will go on the market this month. Will let you all know how it goes!