YOU SHOW ME YOUR COMPS & I'LL SHOW YOU MINE!
Here in The Woodlands and in the entire Houston area, we are seeing the market absolutely go nuts! Multiple offer situations, homes selling before the hit the MLS and prices on the rise. As agents scurry around getting offers submitted, the comparable market analysis is still so important.
The other day I received an offer on a listing and was shocked to see the low price that these clients were starting with. Knowing this to be a very competitive market, I asked the buyer's agent to share the comps that were used in coming up with this offer. The agent was hesitant at first but shared with her that we all have the same access to the same data so allowing me to see what comps they used would be mighty helpful.
What I discovered did not surprise me at all. The comps that they used were the lowest ones that were close to a year old. The agent explained that because they were representing the buyer that they needed to use the lowest comps! Now just a minute!
We cannot arbitrarily leave out the higher comps. They are part of the market. Furthermore, you must, must, must use comps within the last 6 months! Our market has changed dramatically so using old numbers is totally useless.
When I sent over the comps that we used to price the home, the agent was silent. I am having a difficult time understanding the logic used here. We must all use the data we all have access to and present the numbers fairly. We cannot simply choose the comps that will try and make an offer look valid.
Sharing comps is a good thing. The data is not top secret and perhaps by sharing, we can all get to a win-win situation which is a closed transaction! So, show me your comps! I will share too!