The Spaghetti Technique, New Milford CT Real Estate
We had a local appraiser in the office today for our office meeting, Andy O'Hazo from Washington, CT. He has been in the business for 20 plus years, and he knows his "stuff". He took some of the mystery out of appraisals, explained the process he has to go through, and most importantly promised me that there really is no secret decoder ring.
What he also told us was that active home sale prices affect appraisals. Straight from the horses mouth. He will pull active listings first because he needs to know what the lowest comparable is currently priced at. Then he will look at the sold comparable homes. The active listing, should it be lower than the sold homes, will pull the price down!
The Spaghetti Technique of pricing a home in New Milford, CT is just not working!
Andrea Swiedler, Realtor® & Liddy Adams, GRI, Broker Associate
Cell: 203.460.1775 Email: andrea@andreaswiedler.com
Swiedler & Adams, we know real estate!
Prudential Connecticut Realty, New Milford & Litchfield, CT
Swiedler & Adams
Call us at 203.460.1775
© Andrea Swiedler, 2009 - 2012
Always do right. This will gratify some people and astonish the rest. - Mark Twain
Thanks for posting. I did not know that appraisers actually checked out building permits! Great info!
Thank you for the post. I had not heard that appraisers checked for permits.
Vickie, yes indeed, he is not alone. Lenders want them to check everything out.
Gita, who would have thought. But they are. Or they are supposed to be.
I guess it begs the question why an appraiser would not want to make sure that current properties have not dropped below the FMV of homes that have already sold:)
I am cooking spaghetti for three hunderd this Sunday so your title caught my eye...
Bill, I do my market analysis like that, but there are those home owners and agents who don't believe it. I heard the other day from a home owner "she told me lets throw it on for XXX and see what happens". Yeah, ok. There is a way to get it sold...
Hi Pat, excuse me? 300? Don't be throwing that up against the wall.....
If a room addition is made without a permit, they will usually deduct an amount to remove the room, as opposed to just not giving credit.
Unfortunately the lower priced existing listings also includes foreclosures and short sales. In my area foreclosures needs a ton of work. These homes are hurting the local markets.
Andrea...
Oddly enough, we have not encountered any appraisal issues here in Coweta County. Except for a few that came back too high!
DIdn't really think the active listings mattered that much Andrea.. interesting...
Appraisals seem lately like black magic...
We too are doing well on the appraisal side here in the Triangle, Andrea. But those permits... let me just say it's really too bad that folks think they don't need them!
I always enjoy meeting when a professional from a related field speaks at one of our meetings. They feel obligated to provide an interesting slant we don't know just to keep us coming back for more. The lowest priced active comp in the area is interesting. Should have a place in a CMA as well.
Andrea, I am not sure if our local appraisers check the permit or not, so far we are okay with our appraisals. It is a headache when the appraisal comes back too low, like the transaction is not hard enough.......
Sounds like you got a lot of great info straight from the horse's mouth Andrea. Anyone using the "spaghetti technique" to price a home is setting themselves up for failure.
Andrea, I have been pretty fortunate with appraisers lately. I'll ask them what they need and offer them the comps used to set the listing price and offer current sales data. Personally I prefer ziti to spaghetti, and sausage to meatballs
I was wondering where you were going with this one girlfriend! Good one! That is kind of interesting about watching the actives - that certainly would be workable here. We are just now begging to turn the corner a teensy tiny bit -after 3 years of spiralling down.
I'll ask a few appraisers if they are spagetii tosses or what?
Featured in BananaTude
Wow, didn't know appraisers put much weight on active listings because who knows where they will sell but it does makes sense if the listings are lower. Also didn't know they checked out permits either. Thanks for the 'learn something new everyday' event Andrea.
Still stunned at Pat O'Reilly cooking spaghetti for 300!!!! That's alot of pasta!
Now for Ed's choice of dinners.................
Anderia, finding comps these days can be tough. Condo's have been a challenge and 3 - 4 unit multi family have also been difficult to comp in a couple of towns around here. But it always helps to understand the process, and maybe be able to help. As a Loan Officer I can no longer talk to the Appraiser, which is bad especially when it comes to Refi's.
Andrea, This sentence in your blog says it all, "The active listing, should it be lower than the sold homes, will pull the price down!" I believe this is part of the reason we are in a self perpetuating downward cycle. A home comes on the market. The listing agent tries to price considerably lower than the last sold comp (because they feel we are in a downward spiral). The appraiser come along once the house has an offer, and discounts as well.
I'll follow up Myrl's comment about "The active listing, should it be lower than the sold homes, will pull the price down!" and ask if "The active listing, should it be higher than the sold homes, will pull the price up!"?