Having Trouble Getting A Seller To Understand The Real Value of Their Home? Appraise it!

I hear the complaint everyday.  Real estate agents are having difficulty getting sellers to realize the real value of their home in today's market.  

Many sellers believe their home is still worth what it was last year or the year before.  They think its worth what the one across the street is listed for, or even worse, what their neighbor, the plumber down the street, thinks its worth.

This can put you, as a current or potential listing agent, in the very uncomfortable position of delivering very bad news.  In some cases, this can even lead to deal-breaking argument.  

You certainly don't want to take a listing that is priced out of the market.  This costs you too much time and money. 

Even with a CMA, the seller may take this news out on you by not listing their home with you or by counting the days until your listing expires to then hire an inexperienced agent who will say and do anything to get a listing.

Many of Las Vegas' top listing agents have gotten over this challenge by removing themselves from this uncomfortable discussion.  

Their solution?   Hire a professional appraiser to come appraise the home immediately.   So for $400 or less:

1) You get out of the challenges, and potential pitfalls, associated with delivering the bad news.

2) You can use this appraisal in your marketing (example: Home appraised for $350,000, will sacrifice for $325,000)

3)  You can leave a copy in the home for buyers that come tour the house.  Buyers and their agents can go thru it right in the house.   It's a great piece of on-site marketing.

4) The buyer may even be able to have this appraisal transferred to his lender so its not paid for twice.

5) You have the potential to save your client thousands of dollars.

Most of the agents I know ask the seller to pay for the appraisal.   The buyer's lender is going to demand one anyway.  It's going to have to be paid for sometime before the transaction closes anyway so they simply try and get it reimbused by the buyer at close.

It's also a great investment.  The seller has to make his house payment every month the house sits on the market and doesnt sell.    If he isn't priced right, this can mean thousands, if not tens of thousands, of dollars in wasted expenditure.

I can tell you from experience, that in many cases, this appraisal still doesn't sit well with the seller.  However, their disappointment, frustration or anger then gets deflected to the appraiser, who deals with this everyday in today's marketplace, and is an accepted part of their job, and away from you.   In nearly every case I have seen, the seller does adjust their sales price and expectations, based on this information.  This allows you to maintain your relationship with the seller.   And if they don't, you have a real, sound basis, to to make a decision whether to move on or not.

At the end of the day, you are not an appraiser, but a trusted sales consultant, who will do the very best job possible for the client. 

This is a fantastic way to market yourself, market the property, get the seller to understand the true value of his home, list it to sell, and most importantly, maintain your good relationship.