All Forum Posts by: Jason Grote

I get leads in Bastrop every so often, so I will connect with you and let's talk!

Jonathan, hello from South Austin! I would certainly move on and go find another. If you are to follow up at all, you could send a polite letter with your info on it so that they may keep it on file. Wish you the best!

I think it can all be summed up like this:

Appraisers think like bankers

Real estate agents think like the public (the ones they represent)

Investors think like business owners

So, getting investors and appraisers to agree is about as likely as our country becoming debt free...

I thought my initial question was pretty straightforward. Here it is again...

"I am curious as to what fellow investors think about who is the most qualified to analyze comparable sales. I understand that Realtors and Appraisers are the ones with legitimate access to the MLS, but if you had to pick between a Realtor, an investor, or an appraiser, which do you think will hit closest to the mark for an investment property that you are analyzing?"

So, really I was curious as to who could nail the value of an investment property best... and by that I meant obtain a value. Why else would you analyze comps other than to get a value?

I am still using Dad's money! However, knowing what I know now, it would be very easy to tap into other sources. Starting out is always dark and lonely!

Nathan, welcome to BP and Austin real estate investing. If there is anything I can do to help, let me know. I am a residential flipper/wholesaler/landlord.

-Jason Grote

@Shane Woods Sorry for the slow reply... Since this original post, I have got the double close dialed in with my title company here in Austin.

Assuming I am the investor in the middle (B) of the double close, if I am paying for the title policy (it is on my side of the HUD-1) then I can elect to pass it through to the end buyer and neither the A or C party will have the details of the other contract disclosed to them. However, the A party will know that they are part of a double close, so it is good practice to let your sellers know that you are indeed passing the contract along to an investor partner.

Hope that makes sense. Also, talk to your title company about the fees that are incurred. Because of our relationship with our title company, the double close only costs us about $75 more.

@Gary Hurst Would like to connect... are you a wholesaler, flipper, or both?

@Bill Gulley For the sake of clarification (and not argument), you said:

"The question was analysis of comps, not guessing at a price possible or obtained."

What is the difference? Why would you analyze comps on a particular property without guessing at a price possible? It is a known fact that you can acquire 5 different appraisals and will more than likely get 5 different values. Though appraising is more scientific, they are actually limited in their science because some elements are not considered.

You also said, "but I wouldn't "compete" with an active appraiser in my area as they have much more information to draw upon than I do from the MLS."

If an appraiser, broker, and investor are all looking at the same comps, what other information does an appraiser have that the others wouldn't?

Then finally you said, "Most Realtors assume market performance and begin at the neighborhood, I'm guessing investors do as well. That's not analysis, it's guessing based on assumptions and personal bias."

I say, well, duh! Why would you consider an entire city for the value of a home? Appraisers pull comps in the same neighborhood unless there is not enough data to build there approach. This makes no sense at all...?

Great feedback everyone. I see that everyone mostly agrees on this topic. Experience and familiarity with the area of the property in question seem to be the qualities that will bring the most accurate evaluation of the comps. I will say that I would prefer an investor/agent because of their ability to understand the "retail" perspective which is the home-owner-buyer and at the same time have the mindset of a "wholesale" buyer who looks at a house as an investment and not necessarily a place to live.

One other thought is that banks are now ordering Broker Price Opinion (BPO) instead of appraisals to determine the value of a foreclosure or short sale. Any thoughts on why that might be?