Frank Chiu (Active Realty Group)

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Rainmaker
3,917,955
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Frank - I  think of the "no comps" argument requires more research.  Maybe in the neighborhood/just beyond/the market as a whole. Desirability/Appeal come to mind.  Is there someone in your office you can ask for help?  You have provided a lot of information but more is needed.  

Jul 12, 2019 04:33 PM
Rainer
300,501
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Hard to give any specific help without images. Are you saying they have a two story house with contemporary kitchen, the additions are not visibile or wierd floor plan and exterior looks like a house built in the 1980's???  You can't legally call it 1980's - did you check the permits?

Jul 12, 2019 04:06 PM
Rainmaker
708,861
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Frankly, you need to hook up with an experienced agent from your office.

Jul 12, 2019 04:48 PM
Rainmaker
1,162,717
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

bed bath sqft and condition CMA is where I wouldd start for a baseline

Jul 13, 2019 02:47 AM
Rainmaker
1,355,908
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Comp it against the rest of the homes in the area then make an adjustment for it's main part's age.  If the plumbing and electrical are all new and good, then functional obsolescence is less of an issue.

Jul 12, 2019 10:03 PM
Ambassador
5,163,781
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Is the older part of the home out of date or dilapidated?  Probably not.

Use the comps you have and make adjustments where needed.

Jul 12, 2019 08:34 PM
Rainmaker
1,821,220
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I had to take on many such properties here in the rural State of ND. It all depends on how much work you are willing to put into it.

Jul 12, 2019 07:43 PM
Rainmaker
1,697,260
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Time to talk to your broker for guidance. 

Jul 12, 2019 07:37 PM
Rainmaker
961,553
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Without seeing the property and neighborhood it's difficult to answer your question. When I first started I would ask other agents and the office manager for assistance.

Jul 13, 2019 06:03 AM
Rainmaker
3,971,535
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Sometimes you have to ask for help. Your managing broker or friendly appraiser is a good start

Jul 12, 2019 06:17 PM
Rainmaker
826,578
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Could depend on the quailty and design of all the additions and upgrades. I wouldn't worry about what year it was built.

Jul 12, 2019 05:31 PM
Rainmaker
5,570,348
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

you should have some assistance and guidance from your broker/owner/manager, or who ever is training you.... you would be wise to take some basic training courses through your real estate board or state association of Realtors.... a back to basics course...

Jul 12, 2019 04:31 PM
Rainmaker
1,762,811
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I'd look at houses that were about the same size and + or - based on features. The way you said the original building is still attached makes me think it doesn't look like one house? That might make it worth less.

As others have said, someone from your office/area would have to help. There are a lot of factors that are important in doing a CMA (specific location, house style, amount of land, etc) that are location specific.

Good luck!

Jul 13, 2019 02:38 AM
Rainmaker
5,308,773
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Frank,

I agree with Michael Jacobs .  Talk to your broker.  A

Jul 12, 2019 05:32 PM
Rainmaker
6,308,742
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Carefully make the needed adjustments. The market will determine the actual value.

Jul 12, 2019 04:22 PM
Ambassador
2,990,725
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Despite all the information you provided there is not enough information to provide a meaningful response. 

Get help from someone who understands how to make adjustments to the subject property - much like an appraiser does. 

Jul 13, 2019 08:55 AM
Rainmaker
3,852,642
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I can't help you here... don't know enough about the market there, the neighborhoods, no pictures, etc. If you're having a problem get an appraiser.

Jul 13, 2019 04:41 AM
Rainmaker
3,830,170
Richard Weeks
Dallas, TX
REALTOR®, Broker

If you are trying to list the house advise the seller it would be a good idea to just pay for an appraisal.

Jul 13, 2019 02:44 AM
Ambassador
4,461,010
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I don't think I would worry about the year built. Sounds like a discussion with your broker is warranted!

Jul 12, 2019 08:37 PM
Ambassador
2,504,472
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Michael Jacobs has given you some great advice, along with several others. All real estate is local, so go to your broker or call an appraiser to get true market value!

Jul 13, 2019 10:38 AM
Rainmaker
181,274
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Call 2 or 3 local appraisers.  Ask how they would approach the situation.

Jul 13, 2019 08:46 AM
Rainmaker
1,087,341
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Square footage is only one aspect to look for and I would lean toward functional obsolescence as a main detractor of value with a home having this many renovations. It's not so much the age of the home but it's design. Can it compete?

Jul 13, 2019 08:35 AM
Rainmaker
864,576
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

This is actually what you are being paid for. Who needs a realtor if the house was the same as all others sold?

Now, be aware, appraisers are lazy and will fall into the same 'no comps' trap you have fallen into and undervalue the property. Having the house appraised and having completed your real estate agent CMA, you will SEE all the arguments that will be presented by those who what to undervalue your clients house. Now that you can SEE their playbook, it will be easier to justify the true value. Always stay focuses on the tangible assets of this house and never fall into the 'whose comps are better' nonsense.

Your analysis is three fold:
1. Make a true assessment of the tangible assets of the property. This may include deduction for low ceilings and obsolescence if applicable,
2. Adjust baseline (SP/SF) to reflect adjustments. If SF is 15% +/_ of recent solds apply inversion.
3. Embed modified appraisal waiver.

Lastly, the owners time-line will dictate the actual list price. Be prepared, all the other agents will say, 'Too high," "Too low" and those without a clue will chant 'raise the bar.'  The appraisers will also do the same.

The true value of real estate is what a willing buyer and seller agree upon. Your job is to present the promise of transformation to the buyer and they will do whatever is needed.

in the difficult situation you describe, you must PROTECT the seller. Every mistake you allow devalues the product. Do not, Do Not, DO NOT take the house off the market until you negotiate a purchase offer meeting ALL the preconditions. Consider value adding inclusions with the sale of the house that can be easily extracted for negotiation purposes.

If you continue using the real estate agent traditional CMA approach you will simply dig yourself into a deeper hole. And it is from this hole you must pull the other agents who also can not JUSTIFY the value.

That is now your job. Help them justify the value.  This is where tools like CIS Score and JoistApp are indispensable.

Jul 13, 2019 05:20 AM
Rainmaker
1,707,197
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

If you can't figure this out maybe this is not for you.

Jul 13, 2019 06:59 AM
Rainmaker
488,908
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

What's the condition of the old part of the home?  Does any of the surrounding homes (comps) have additions? When reading your questions, it looks like this is the only home with a section built in 1959 and the rest of surrounding homes (comps) are newer.  I think it's very hard to give an opinion without seeing the house and the surrounding homes in the neighborhood.  Also I'm assuming they had a permit everytime they added an addition.  I would ask my broker or tell the seller that it's better to have the home appraised by an appraiser.  Best of luck!

Jul 13, 2019 03:46 PM
Rainmaker
1,690,478
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Do square footage. I can't believe that you think the 'original part of the 1959 house' is confusing. In fact, the seller could have made a monster that will not be easily sold with all these different wings. 

2006 means it needs another renovation.

Jul 13, 2019 11:22 AM
Rainmaker
1,132,095
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

sf adjust- replacement cost in here $100-150/sf. 

If the interior of existing home is modern there is no adjustment on condition. 

However, it is valid to duduct on age say $30-50K with few lenders question you.

One can also throw in a newer similar size home by extending the distance showing your analysis is accurate. 

Jul 13, 2019 09:20 AM
Rainmaker
4,682,034
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have had very unique properties with little to no comps, and have called an appraiser to do a value appraisal.

Jul 30, 2019 09:43 AM
Rainmaker
803,567
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It's hard to say without seeing all the properties and depends on the quality of the upgrades and how harmoniously all the additions blend in. You need to seek local advice.

Jul 15, 2019 06:54 AM
Rainmaker
860,409
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 Good luck, Frank. You have gotten lots of good suggestions here on how to tackle your challenging CMA.

Jul 14, 2019 08:01 AM
Rainmaker
1,649,743
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

You need the help of your broker or another experienced agent to do this properly.

I would highly recommend you take an appraisal class which will help you understand how to make the adjustments for unique properties that don't fit with the available comps. 

Jul 14, 2019 07:12 AM
Ambassador
4,040,952
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Definitely speak with your broker - I don't know your specific area and what the average adjustments would be, the location of the property and so much more!

Jul 13, 2019 05:08 PM