Real Estate comps and appraisals only measure what has happened in the past.
Well, that's the point right? Yes, they are a great tool to help determine the value of a property, but they are not the only source to consider in today's changing market.
Important to know what homes have been selling for recently to measure what a home may be worth, but that does not tell us what is happening right now.
Example: Have a client with an inherited property to sell in an area they do not know well. The agent pulled the comps to show them what has been happening in that market. Good Job. Because this agent really knows and lives this market, they know what has been hanging out not selling, what is in demand and how to price this property. It's possible only 1 property has sold that would be comparable, but what if there is a pent up demand (not measurable by comps or appraisals) for this type of property and nothing similar has been for sale for a long while? Only your agent would know this and be able to price it right.
Consulting with your agent about more than just what the comps say is essential.
Example 2: Buyer has been watching the market for a while and notices there are several bank owned or short sale properties in the area they wish to buy. They watch and watch and watch. When they finally decide to buy the market has changed, yet there are not comps as of yet. The Agent will know what is really happening in that market - how many homes are pending and how fast they are selling. This conversation with your agent can help with what the home(s) may really sell for and in turn, make the offer process more productive instead of offering low, below market prices.
So, use that appraisal and the comps as one of the tools available to help you as a Buyer or Seller make the right choice when pricing or buying your home.
