An Appraisers point of View !!!!!
What does this mean can it make a difference in the sale of your property or when you purchase a property?
Yep it sure does make a difference, you see his or her opinion will make or break the deal all the way around. If your property does not appraise for the amount agreed upon in the contract then guess what the buyer has a few choices and so do you as the seller. And either way you go most of the time neither party is a happy camper.
Choices that can be made:
1. Buyer can come to the table with the difference between what was agreed upon and the appraisal value.
2. Seller can drop the price to what the appraiser says the value is.
3. You can get another appraisal which takes time and usually comes out the same.
4. The Deal is dead because the buyer can not finance a property that will not appraise for the asking price, The lender will not give the extra money needed to meet the contract price.
Take a moment to view this short video on an appraisers point of view. He gives and interesting thought on what it is that He sees and what makes a difference to him. After viewing let's move onto several more factors. See you back here in a minute or two.
What works now in an appraisers point of view
Ok know that you are back let's talk about what he said and how it made a difference to him. He said he is looking through the eyes of the buyer, So what does that mean to you as the seller? Take a step back and look at your property what do you see?
He mentioned a few items such as is the property maintained, clean, drive up appeal, updated fresh paint ect...? On the updated part he also mentioned one factor that many do not consider. It is better to be the lower end of the properties for sale on the block than the best one on the block. That must mean do not over improve your property for your area. That is where we come into the picture either from a buyers stand point or the sellers stand point either one we are here to help you set your price or help you make the best offer.
Either way you look at this as a seller you do not want to set your price to high and then the appraiser comes back and says to you well the your property appraises for less than what you expected it to be. No one wants to hear those words ever.
As a buyer you most likely have gone through a fair amount to get to the point of the appraisal, such as inspections, surveys, all the paper work to get to this point only to hear the property you have set your heart on getting did not appraise at the value you wanted it to. No one is a winner here.
Give us a call today and let's talk about how to set the correct value on your property what updates will most likely bring you the best dollar for dollar value and what the potential buyer will be looking at when they arrive at your property.
And as a buyer pick up the phone and let's talk about what it is that you are looking for in a property that you would like to call home. WE know the area and can help you find just what you are looking for.
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Laura:
I think if you take a larger view, sellers, potential buyers and real estate professionals are NOT at the mercy of the appraiser BUT at the mercy of the real estate market itself. The real estate appraiser is merely doing his or her job, as difficult as that may be, given the available pool of sales or other value indicators. I'm not saying that users of appraisals should not question or even challenge them. I think this is healthy and needed because the valuation of real estate is not an exact science. I'd just like at least the professional involved to identify the real culprit, the real estate market, and not those who are just carrying the message.
Just my 2-cents.
Richard you are correct the price set must be what the market holds that is why I said in the post
That is where we come into the picture either from a buyers stand point or the sellers stand point either one we are here to help you set your price or help you make the best offer.
Give us a call today and let's talk about how to set the correct value on your property what updates will most likely bring you the best dollar for dollar value and what the potential buyer will be looking at when they arrive at your property.
If the correct price is not set there will be a problem when the appraiser comes out a BIG ONE and no one wants that to happen. As a Broker we can try hard to do our jobs and set the correct price from the start and then we will not have a problem at all. And then the appraiser can tell everyone involved that we can close on time. Which is what everyone wants to hear every time all the time.
Laura, the appraisal from the Buyer's Lender is certainly a consideration when pricing a home for market. We recently had a discussion amongst some Realtors© here in Kansas City about the possibility of separating the REO sales from those of regular sales. As you know, home values in some neighborhoods with REO sales have been devasted. Often, most of the homes have been occupied and cared for by their owners for 20+ years with few sales. Then, in the 90's when property values were rising, people sold their family homes to investors who turned them into rentals and then let the homes go into foreclosure as values dropped. There is a clear and distinct difference between the owner-occupied homes and the homes abandoned by the investors. So, my question to you is Do you think separating the two when doing comps and appraisals is a viable alternative to the way values are determined using comps?