When Sacramento Buyer’s Agents Use the Wrong Comps

Sometimes agents use the wrong comps or don’t provide comps to buyers.

Sacramento buyer’s agents do not always give the comparable sales to the buyer and, if they do, sometimes agents use the wrong comps. Buyers often base a price decision on what else is for sale and not on closed comps. It is not uncommon. Further, the reasons why agents use the wrong comps are varied. Agents might pull comps that are outside of the property’s radius. Or, there might be too many comparable sales in that particular neighborhood to choose from. Or, perhaps the agents just don’t know the neighborhood very well.

Maybe the buyer’s agent is unfamiliar with appraisal terms. There are all kinds of real estate agents in Sacramento real estate. A seller mentioned to me the other day that the first agent she considered to list her home was a property manager. He wanted to list her home for almost $50,000 more than the comps supported. Why? We don’t know. Maybe he didn’t want to lose the listing.

I explained to the seller that many property managers are not really real estate agents, per se. She said ever-so-sweetly, “Oh, but he has a real estate license.” Certainly, he has a real estate license because it is required by law to manage rental properties, but a license doesn’t make a property manager a real estate agent. Those are two different occupations and specialties. A person who deals with tenants, evictions, collections, repairs, does not necessarily know how to sell real estate, and could very well be one of the reasons agents use the wrong comps. I don’t know why he gave her the wrong price.

We also received an offer from a buyer that was $20,000 less than our list price. When I asked the buyer’s agent why the buyer made such a lowball offer in light of the comps, she replied there was a similar home on the market at that price. An active listing is not a comp. It is an active listing for sale. Homes do not become comps until they close escrow. Further, why didn’t the buyer go buy that house? That would be a reasonable question. Probably because there are things about that house the buyer doesn’t like. Doesn’t like enough to pay $20K less for, apparently. Which makes that home worth less than its list price, but not ours.

My solution? Since we cannot assure that a buyer’s agent will give the comparable sales to the buyer, the next best thing to do is make the comparable sales part of the counter offer, as an attachment. Little tells the story better than the numbers in black and white. Just check that little box for an attachment on the counter and merge the two seller-signed documents into one PDF file.

If you’re looking for an experienced Sacramento listing agent, please call Elizabeth Weintraub at 916.233.6759.