Home Prices and Appraisals

Teena Cobb — Mon, 12 Apr 2010 14:45:00 GMT

As a seller, remember, you CAN list your home and put ANY price on it. You may even find a buyer that's WILLING to pay that much for it. However, the deal can go sour really quickly if your home doesn't appraise at or above the contract price. That's been a common occurrence in this market. As a buyer, you don’t want to invest the money in the appraisal and inspections on a home you plan to buy, only to find out that you have to look for another home and the money you’ve spent is for nothing.

For sellers, the market analysis your agent does on your home should be updated when you receive an offer if you've had your home listed several months. If your agent didn't do a market analysis when you listed your home, they didn't do their job. If you didn't listen to your agent, that could be the reason you're home hasn't sold. In this market, price is one of the best selling features. That being said, however, your agent should be ACTIVELY marketing your home, not using price reductions as a marketing strategy.

If you’re the buyer, have your agent work up a market analysis so you can make a reasonable offer and be informed as to what fair market value is for the home. Our contracts have language that make the offers contingent on the home appraising at or above contract price. To keep my buyers from paying for an appraisal and then the deal falling through, I've been including an addendum that the seller agrees to either pay for the appraisal or reduce the price to appraised amount if it doesn't appraise high enough. The seller has the choice, but it keeps the buyer from wasting money on a home they don't get to closing on. I also wait until we get the appraisal back before scheduling any of the other inspections.

As an agent, we should be handling these transactions for the buyers and sellers as if it were our own. Call me today at 850-501-5875 if you want someone that will give it to you straight and WORK, WORK, WORK for you!

Teena Cobb : market analysis, Market Conditions

Home Prices and Appraisals