Are Appraisals Killing Deals in the Naperville and Chicago Western Suburb Real Estate Market?
Sellers Beware!
Price your home right and you will have a fair chance to sell your home in this sluggish housing market we are currently in...there are buyers out there willing to pay fair market value. There may even be buyers out there that will (unknowingly) agree to pay OVER market value for a home in todays market. While this does happen from time to time, most of these buyers are working without the expert advice and negotiation savvy of a professional Buyers Agent who works on their behalf (and is compensated by the seller, NOT the buyer).
Here is the problem...In either case, whether you think you got a great deal on the sell price of your home or not, once you as a Seller agree to a sales price the buyers loan approval and underwriting process begins...with a bank appraisal of the property you are selling. The lender orders the appraisal from a list of appraisers they contract with in the local markets they operate. The appraiser will measure the property, account for upgrades, compare recent sales and plenty more calculations all in an effort to arrive at a Fair Market Value as of the date of the apppraisal.
Guess what? If the appraised value of your home is LOWER then the sell price you agreed with your buyer, the buyers lender most likely will not fund the deal and your home will not be sold to them. The buyer will likely ask you to reduce your sales price to the appraised price or they will walk from the deal. Further, most other appraisers will arrive at a similar price so even if you feel that you can sell to someone else at a higher price, their appraiser will likely squash that deal too.
The solution? Get real on your asking price. Ask yourself why you are selling your home? Do you really want out or are just testing the market? Friends, this market is not about testing, if you want to sell your home then price your home accordingly and hire a full service broker who will market the home well. It will save you lots of time and aggrevation.
Visit www.HomeFieldRealtors.com to learn all about our Home Selling System and Full Service Marketing Platform...
Good Selling!
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