When it comes to selling your home you MUST rely on comparable sales data from the MLS. A refi-appraisal is an opinion by an individual that means absolutely nothing when it comes to selling your home. It can not be used as evidence that your home is worth X. There's no MLS rule or law that says you can't use it, but there's also no law or rule that says you can't over price your house.
The only appraisal that matters is the one conducted by the appraiser who was paid to perform an appraisal by the borrower during the purchase process. The sellers appraiser will not be considered by the lender or buyers appraiser.
Anytime a listing agent pushes an appraisal on me and my buyer I know right away the house is OVERPRICED.
You have done one or more of the following...
1. You overpaid for the home now you want someone else to pay for your mistake.
2. You have over improved the home and don't "GET" that you will not get your money back.
The ONLY proper way to determine a list price is to enlist the help of a REALTOR who can show you comparable sales and discuss a sales strategy with you. Automated valuations from the internet can be a start, but they should never be the sole source of information. Even Zillow suggests you should connect with a REALTOR when pricing your home. It's the one thing Zillow and I agree on.
The only time I would suggest NOT making a paper airplane out of your APPRAISAL (not refi-appraisal) is if you live in a rural area with absolutely no comparable sales data. At least THIS appraisal has some merit. Sometimes Realtors have to guess when listing homes out in the middle of nowhere. Paying for an appraisal is a good start for this situation. Your listing agent may be able to explain to the buyers agent that there is no historical data to support their low ball offer. An appraisal in this scenario could be a good tool, but even then, there's no guarantee the appraisal will be considered gospel by the buyer, the buyers agent and more importantly the buyers appraiser and lender.
This is all assuming you have a buyer with a loan. Cash in this case would be KING as no appraisal is required in a cash transaction. Yes, it is legal to hope the buyer will over pay for your ranch in somewhere Texas. It's okay to cross your fingers.
I once worked with a seller who handed me an appraisal from 17 months before he and I met. What he couldn't grasp is that valuations are based on a 3-6 month period, not 17. The market had changed. The values had dropped in his neighborhood but he wouldn't loosen his grip on the appraisal. He was hell bent on selling for the value he had on his aged and useless appraisal. We didn't work together, but another agent did. The seller listed the home for a very high price and it never sold. In fact, he got foreclosed on. The weeds in his front lawn were higher than he was.
Refinance appraisals should NEVER be used to determine a list price for your home. The same can be said for the tax records, especially in Texas, as we are a non-disclosure state. What a home sold for is not a matter of public record. Texans should be grateful instead of assuming it's some greedy Realtor conspiracy. Most tax valuations are very wrong. Almost all homes are undervalued on the tax rolls in the region. So you pay less property taxes. You pay less property taxes because at the time of closing what your sold your home for isn't being reported. Rejoice. And NEVER fill out any forms revealing your sales price because the taxing authority has no teeth to make you!
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