I know that some of you will say “Why should I get an appraisal when I am an agent and can do my own market analysis?”, but there are benefits to the appraisal. My main concern here is with the homeowner who want you to over price their home. When you know that they are asking you to do this, you need to suggest they get an appraisal by an unbiased third party, that way when the home is under contract and the appraisal is the last thing to do before the deal is closed, you don’t get the phone call about the home not appraising for contract price and the sale falling through.
Lets face it 90% of the time, price is the number one thing that is keeping a house from selling. I know that is true in my own market here in Alabaster, Alabama. If it is priced correctly, especially in the current market, it should sell, barring any problems with condition, etc. By pricing the home correctly marketing costs will not be wasted and the homeowner can move on to their new home and not be held prisoner by “the home that will not sell”. By shifting the pricing to the appraiser, the homeowner will not have any animosity towards you.
The appraisal will determine the market value based on nearby similar sales. In today’s market it is important to also look at competitive listings. These are homes that will be in direct competition with your clients home. Why price a home $5,000-$10,000 higher than what they could buy elsewhere. They may not like it at first but they will thank you when they sell their home in a reasonable time for a fair price. If you have a listing in Shelby or Jefferson County, Alabama, that is overpriced please call me at (205) 243-9304 to order your appraisal today.
Nice write-up, Tom. I’m impressed with your topics and content! My wife and I have been working hard on our own appraisal site, and we’re definitely challenged to come with stuff that folks actually WANT to read. This one is both interesting and applicable!
Orlando, thanks for your kind words. It can be challenging to find interesting content. I find reading other appraisal blogs to be very helpful. I look forward to checking out your website.
Great post. I agree, most Realtors (and I am one) can’t finely analyze the data to come up with a good price in this challenging market.
Hey Alison, nice to hear from you and thanks for your take on the matter. I think we both look at the same thing (value) from different perspectives and it’s nice to be able to get a realtors input as well.
I’ve been hired more over the past year by real estate agents than ever before. The market can be tricky to decipher, and sometimes clients of real estate agents really want to see an appraisal so they can feel comfortable with the price.
It’s interesting to see that this is happening in all parts of the country.
Nice write up for the agents, Tom. In my area, I am seeing more agents heed the advice of your post due to the crazy market times we are in.
I hope more and more see the benefits. It is a win-win for all involved.