Area Foreclosures Really Used For Comps In The Woodlands

[celiene]

Hey, fill me in y'all!

I have a friend selling their home in Alden Bridge--it's a nice Lifeforms home---former model--great shape, custom decorated ( not that that matters---just let's you know it shows nicely)

The listing realtor showed them several homes that are either in short sale, or foreclosure as comps---many of which are in dis-repair--wood rot, and the like..........

None were not finished out as nicely as Lifeforms finishes out their homes----but we know---the extras are for your enjoyment only---no real return on value at re-sale!

In that zip code--there are only about 8 homes in short sale, or foreclosure---none of which are in this person's sub....BTW--the realtor "DID NOT" pull comps from the sub that the home was in---even though several have sold there this summer--and was "Unaware" that another home had recently came on the market in that sub ( it was about 10 days ago---enough time for a realtor to have heard about it---if you ask me)

So--wise sages, I have two questions for you:

Do foreclosures and distress sales really effect the comps in this area all that much---esp. since there are not really all that many of them?? ( we are indeed blessed here)--WE REALLY WANT ALL OPINIONS ON THIS ISSUE!

Or,........and this one isn't a very "pretty" question

Was the realtor trying to get them to list at a much lower price---to have a quick sale??

Three different realtors---three diffrent prices/ takes on the market....no where near comparable information

We all know it's expensive to market and carry a home for the realtors---but one would think that both sellers and listing agents would know that in this market--it is just going to take longer to sell your home---as inventory has approached the 6 mo. mark

I recently sold my home in the Woodlands to move closer into town for work--and my co-worker is trying to do the same thing

Thank-You in advance!!!!!!!

[kcoole]

Hi! Good question! I don't know what realtor this was, so I certainly can't speak to his/her motivations. Generally, comps are done first for the section the home is in, and then, if not enough comps come up, we expand to the neighborhood. It is rare that I include comps from other neighborhoods at all, unless the other neighborhood is comparable in amenities, year built, and very close by.

Now, the foreclosures and short sales are generally effecting everyone. Buyers know it is a "buyers market" so they are all looking to get a great deal. Also, it is normal for a home to stay on the market longer these days. Your friends need to be clear with the realtor that they are not in a hurry to sell (if that's the case). It's not good, in my opinion, to list low because then you don't have much room to negotiate.

As far as extras or upgrades go, you are right, you generally don't get the money back out that you put in. That said, these types of things do help a home sell faster than other homes when priced right.

Imagine that you were the buyer and you wanted to buy that size home and in the school district... how does this home compare to the others available (including foreclosures)? What would you buy? That is the best way to come up with a selling price.

I've made a lot of general statements here. I would need more specific information to really be of assistance.

[celiene]

Hi KCoole,

My friend( who is German and speaks broken English,as they say---hubby is in Dubai currently--she is left to sell the home) is busy talking with the other realtors who have recently sold homes in her sub---none of them felt the need to comp their listing with any foreclosures in the area---as the two homes in that section of Alden Bridge in foreclosure really do not comp well---to the homes in this particular sub..........

Now, another thing here........Her listing agent has never shown her home---nor has anyone from that agency shown the home......after 8wks time--I find this unusual

The agency does work "dual-agency", so this is not the issue here

She is aware that many, if not most times the listing agent does not sell the home---esp. if you are listing one of the larger realtors here--you know the ones--pages and pages of listings.......could not work 24/7 and show them all

But this gentleman only has a few listings---so she is surprised that he hasn't shown the home ( average family home---5 bds, 4 baths, hardwoods, cul-de-sac location--yada, yada---was once featured in one of the local Woodlands papers about Lifeform homes) as many times agents will show their own listings first--eps. if the home fits aclients needs

Nor has anyone in this gentleman's office--just weird

BTW--Almost all the listing sold this summer in her sub were sold by the listing agents

Anyway--it will go to relo soon---so if it doesn't Move the realtor losses his time/money invested in the listing

Oh well!!

[kcoole]

The only way the listing realtor would show the house is if he has a buyer who is looking in that market. It is not uncommon for most showings to be done by other realtors, usually through a showing service. Honestly, that's just the way the industry is. Of course, the realtor should get some drive by traffic from people who see the sign and call. It just depends...

[celiene]

KCoole,

I've sold alot of homes in my years--in various markets, at different price points....................300K to 1 Mil.+ ( NYC--dog house costs that much there, LOL!!)

More than half of these homes have been sold by the listing agent( and I make sure they are dual agency before interviewing them) so I "must just be in the minority here".................

The listing agent knows more about the house--both good and bad points ( any house has both) than a buyers agent who may only pass thru the house once

As you stated an agent may not have a buyer for their listing---but unless it is in a market they are unfamiliar with/price they typical don't have customers in--all agents will have a client from time to time to show the house to

A listing agent who has a listing for say--5-6 months and tells the client "I just don't have clients to show your house to" really isn't interested in your listing.......sellers should move on

Of course---the seller has to market home in excellent condition, do everything possible to enhance value

I house I mentioned above looks like a showcase home---and it was...........

I tend to believe sellers are more likely to work with, and stick with an agent who does go the extra mile to try to also sell the home, ect.( even if they do not sell it)----not just list it with pretty pictures( although that is also part of the job listing) and let another agent sell it.......................

Good service gets referrals-----normal service in this market will not............

BTW--this is the general vibe among many residents of this area--both parties have to "bust their humps" in this market to get the job done

Also--I know this "isn't fair" but my sister works for CB Richard Ellis--commerical real estate ( and oh, boy--does she do well)---and these are also her opinions that I am sharing here with you...........

Now, if you are not "dual agency" by your choice, or by your broker's choice--that is another thing.........

[kcoole]

I agree with everything you said. I was just saying, if the agent doesn't have a lot of business... maybe they only work part time, or don't work in that area often... then they might not have buyers. Personally, I've sold about 1/2 of my own listings as well.

[woody_hawkeye]

I have a perception not as a seller but as a tax paying individual who has to deal with comps every year with the county. We are in a housing demand scenario here. I have not seen a low comp lately as a result of nearby sales at subsidized quick sale values. That remonds me, I missed my appointment this year since I was on vacation. Need to call them.