Real Estate Blog - Price it to sell, should we indulge an appraiser's opinion?

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Price it to sell, should we indulge an appraiser's opinion?

Price it to sell, should we indulge an appraiser's opinion?

Real Estate agents are not real estate appraisers and we all know this. We do CMA's and check and see what other properties have been listed at, and been sold at in order to make an educated decision as to how to suggest a listing price for our customers. (This does not include properties in short sale status, foreclosures, and REO's).

An appraisal must professionally and competently comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Should real estate sales associates employ these people when deriving or suggesting a listing price for a customer? Should the real estate sales associate/or REALTOR(r) consult with a licensed appraiser?

Sales associates can give an "opinion of value" can suggest a listing price as a result of a CMA that has been correctly done based on recent sales/listings/pending sales in the area of the property to be listed.

It's not that the seller will necessarily agree or listen to what is being said.

With the power of a recent appraisal in this market, is the power with the appraiser or is the power with the CMA prepared by the agent.

What say you?

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Posted by Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! on 05/04/2009 10:46 PM

Comments (6)

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Originally posted at: Karen@ www.KarenMonsour.com: Price it to sell, should we indulge an appraiser's opinion?

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6 Comments on Price it to sell, should we indulge an appraiser's opinion?

MAY

In instances where I have listed unique properties that have proven difficult to complete a CMA, I have paid for an appraisal out of pocket for the benefit of the seller. I've never regretted it.

Stephen,

I'm glad I'm not the only one who values the opinion/appraisal of a professional. These days with so many foreclosures and short sales, sometimes it's really hard to do a realistic CMA for a seller not in involved in the same situation. (Although short sales, foreclosures, REO's do affect the sellers).

Do you find discrepancies in what you have achieved by doing a CMA versus the professional appraisal?

MAY

We have not used this concpet yet - but I would think you do need to be very mindful of how the lenders will look at the final selling price of the home. We have already had issues with sales prices vs appraisals, which lead to challenges in getting the property to close.

Jean,

Can you elaborate a little more re: "but I would think you do need to be very mindful of how the lenders will look at the final selling price of the home."

MAY

Karen, the purpose of the CMA, as you stated, is to determine an ASKING price, not a market value. Whereas the purpose of an appraisal is to determine market value. I always advise my sellers to get an appraisal. That is my disclaimer. However, most do NOT because they don't want to spend the money to do so. I tell them, that if the appraisal comes in higher than our asking price, we can advertise that fact to prospective buyers. If it comes in lower, then we won't disclose it to buyers. Mainly I recommend an appraisal when sellers won't be realistic about their asking price. Hope this helps! ;)

Regina,

Exactly. "When the sellers won't be realistic about their asking price." that's the whole point I was trying to make with this blog.

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