The Listing Appointment: Two Comps, One Price
Denise is taking a listing on a 1978 ranch: 1,720 sq ft above grade, 3BR/2BA, original kitchen, unfinished basement, attached 2-car garage, 0.31 acre, new roof in 2022. Her market study supports these adjustments: gross living area $55/sq ft; full bath $6,000 (half bath $3,000); finished basement $22/sq ft; garage $8,000 per bay; kitchen update $12,000; market time 0.5% per month of appreciation.
Comp A closed at $312,000 two months ago: 1,790 sq ft, 3BR/2BA, 900 sq ft finished basement, updated kitchen, 2-car garage, 0.28 acre, 0.6 mile away.
Comp B closed at $268,000 three months ago: 1,640 sq ft, 3BR/1.5BA, no basement, dated kitchen, 1-car garage, 1.1 miles away.
The seller wants to be "in the top 5% of the neighborhood" and needs to be moved within 75 days.
1. Adjust both comparables to the subject and state the indicated value range. Which comparable deserves more weight, and why?
Read the worked answer
Comp A → subject (subtract when the comp is superior, add when inferior):
| Item | Adjustment |
|---|---|
| GLA: comp 1,790 vs subject 1,720 (comp superior 70 sf × $55) | −$3,850 |
| Finished basement 900 sf × $22 (subject has none) | −$19,800 |
| Updated kitchen | −$12,000 |
| Time: 2 months × 0.5% = 1.0% of $312,000 | +$3,120 |
| Adjusted | $279,470 |
Comp B → subject:
| Item | Adjustment |
|---|---|
| GLA: comp 1,640 vs 1,720 (comp inferior 80 sf × $55) | +$4,400 |
| Half bath short | +$3,000 |
| One garage bay short | +$8,000 |
| Time: 3 months × 0.5% = 1.5% of $268,000 | +$4,020 |
| Adjusted | $287,420 |
Gross adjustment: Comp A $38,770 (12.4% of price); Comp B $19,420 (7.2%).
Judgment: the two adjusted values bracket a range of roughly $279,000–$288,000. Neither comp is clean. Comp A is more recent and closer geographically and matches the subject on baths and garage, but $31,800 of its adjustments ride on basement finish and kitchen dollars - the two adjustments appraisers trust least, because buyers rarely pay feature-for-feature. Comp B is smaller in gross adjustment and closer in size/condition, but it is older, farther away, and requires three separate adjustments. The defensible conclusion is to weight them about evenly and lean toward the upper half of the range, because the subject's 2022 roof and 2019 furnace were not adjusted for at all. A lot-size difference (0.31 vs 0.28 acre) exists but no supported adjustment was given - disclose it rather than invent a number.
2. Recommend a list price and a plan that meets the 75-day deadline. Show your reasoning.
Read the worked answer
List at $289,900 - do not exceed $294,900.
Reasoning:
- The indicated value is ~$282,000–$288,000. Listing 2–3% above the top of that range creates negotiating room without pushing the property into a bracket where it will not appraise.
- $289,900 also sits just under the $290,000 search ceiling that many buyers and agents use, so the listing captures the whole "up to $290,000" pool instead of only the "$300,000 and up" pool.
- A 75-day deadline means the first 14 days carry most of the traffic. Overpricing to "test the market" burns that window and produces the death spiral of price cuts that is worse than one correct price.
Plan:
- Pre-listing inspection and radon test before going live, so the buyer's inspection does not become a renegotiation.
- Full photo/marketing launch midweek; broker preview within 5 days.
- Review activity at day 14 against a written benchmark (e.g., fewer than 8 showings or no offer = price is the problem, not marketing).
- Get the seller's written agreement in advance to a specific reduction (to $284,900) if benchmarks are missed - negotiating a price cut before the listing is emotional is far easier than after.
Never promise a sale price. Commit to the process, not the outcome.
3. The seller insists on $325,000. What do you do?
Read the worked answer
$325,000 is roughly 15% above the supported value - not a disagreement about $5,000, but a different property than the one the data describe.
Steps:
- Re-present the grid, not an opinion. Walk the seller through the adjusted values line by line and ask what market evidence supports the higher number.
- Quantify the consequence. At $325,000 the likely buyer's own lender will appraise near $283,000–$288,000. A buyer at 90% LTV would then have to bring roughly $35,000–$40,000 extra cash to close, which rarely happens. The realistic outcome is 90–120 days of market time, then a reduction, then a sale below today's value.
- Document. The price is the seller's decision; the opinion is yours. Keep the CMA in the file and have the seller acknowledge in writing that the list price exceeds your recommended price.
- Protect the record. Do not restate the number as your opinion in any writing, do not advertise it as "below market" or "great value," and do not let a lender or appraiser be told the price reflects your analysis.
- Offer a middle path if the seller needs to feel the market: a short, dated trial at an aggressive price with a written reduction scheduled in advance. Accept that you may lose the listing - an overpriced listing that never sells costs more than a lost signature.