Atlantis Appraisals
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Atlantis Appraisals
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What is a Comp Check?
A comp check is a guess as to what the property may be worth. Without seeing the
house and neighborhood, it is only a guess. The more you tell us about the current
condition of the property, the closer the appraised value may come to the comp value.
We receive comp requests on a daily basis that we have absolutely no way of determining
any realistic value for, other than a range of plus or minus $100,000. People call us with
a property address and ask us what it comps out at. This is similar to calling a car dealer
and asking them how much my 1991 Mercedes convertible will sell for without knowing the
engine size, the color, mileage, repair history, or condition. If I did provide this information
about the car, then the dealer might give me a plus or minus range of about 30% without
seeing the car. If we have good information about the condition of the property, we can
figure a relatively good estimate of what it is worth.
Why few comps work out
Most homes that sell on MLS have recent substantial remodeling ($25,000. or more in
renovations). So, unless a home has had substantial recent updating, it will be worth
substantially less that the typical house in the neighborhood. Almost all homeowners think
their house is worth more than can be justified to a wholesale lender. With the current
declining market, LESS THAN 1 PROPERTY IN 10 COMPS OUT WITH A WORKABLE
VALUE. In the greater Sacramento area, if the property has been refinanced or
purchased in the last 2 years, then it will not comp out for an equal value unless
substantial money has been spent remodeling the property since it was purchased . Most
all properties that have been purchased in the last two years are currently worth less than
the purchase price. We are seeing declines from $30,000 to over $150,000. since the
peak in the market in July 2005. Most homeowners that have refinanced in the past two
years borrowed all of their available equity. Zillow estimates are very inaccurate and
often overstate the value by $50,000. or more.
A comp check is a guess as to what the property may be worth. Without seeing the
house and neighborhood, it is only a guess. The more you tell us about the current
condition of the property, the closer the appraised value may come to the comp value.
We receive comp requests on a daily basis that we have absolutely no way of determining
any realistic value for, other than a range of plus or minus $100,000. People call us with
a property address and ask us what it comps out at. This is similar to calling a car dealer
and asking them how much my 1991 Mercedes convertible will sell for without knowing the
engine size, the color, mileage, repair history, or condition. If I did provide this information
about the car, then the dealer might give me a plus or minus range of about 30% without
seeing the car. If we have good information about the condition of the property, we can
figure a relatively good estimate of what it is worth.
Why few comps work out
Most homes that sell on MLS have recent substantial remodeling ($25,000. or more in
renovations). So, unless a home has had substantial recent updating, it will be worth
substantially less that the typical house in the neighborhood. Almost all homeowners think
their house is worth more than can be justified to a wholesale lender. With the current
declining market, LESS THAN 1 PROPERTY IN 10 COMPS OUT WITH A WORKABLE
VALUE. In the greater Sacramento area, if the property has been refinanced or
purchased in the last 2 years, then it will not comp out for an equal value unless
substantial money has been spent remodeling the property since it was purchased . Most
all properties that have been purchased in the last two years are currently worth less than
the purchase price. We are seeing declines from $30,000 to over $150,000. since the
peak in the market in July 2005. Most homeowners that have refinanced in the past two
years borrowed all of their available equity. Zillow estimates are very inaccurate and
often overstate the value by $50,000. or more.