Boots on the Ground

by Matt Dutton, Certified Residential Real Estate Appraiser

August 2023

"Is finding comparable sales going to be a problem?"

Our residential appraiser has been asked this question a lot lately. As appraisers in rural America, finding comparable sales is a constant challenge. In some of the less populated markets we cover, sales activity is very sparse, and often there are no truly comparable sales. Homes frequently sell through word-of-mouth, and because Missouri is not a public-disclosure state, the prices of these transactions are rarely made available.

How do appraisers handle these situations? We put boots on the ground. We talk to local real estate agents, buyers, sellers, assessors, and other appraisers. We scour every possible avenue we can to come up with comparable sales.

When all else fails, we look elsewhere, or we go back in time. It's generally preferable to use more recent sales from other neighborhoods, particularly when those markets have similar demographics. The idea would be that once the location differences are accounted for, buyers and sellers would act similarly in similar neighborhoods. Using older sales has become less preferable in recent years, as we have seen hefty price spikes.

Ultimately, it's most important to really understand the dynamics of the market you're in. Accuracy is very important to us, and we strive to also have a strong understanding of the general state of the market. When comparable sales are less available, it becomes more important to have your finger on the pulse.

Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.