I put out a monthly CMA of several subdivisions. Yesterday I received an e-mail from a person that receives this monthly mailing. This person wanted me to write a letter stating that their home would be worth $300,000 if it sold today for cash. I didn't consider doing this, but I wanted some historical information from their subdivision that I could use in my reply e-mail. I went back in historical data to January 1, 2005. I found that the cheapest home that sold on their street was $420,000. Last month the home that was next door to their home went under contract for $519,000. I used these examples, and other examples found from my research in my reply to this person.
I first told this person that my information put out monthly are just my opinions based off of research from the MLS. In addition, I told this person that they needed to consult with an appraiser who could provide real value of their home. Come to find out, they had a child in an out-of-state college and they are seeking financial aid. Obviously trying to not fully be truthful on your home value, and valuing your home at considerably less of a price than what the actual worth is would be favorable to her on a financial aid form.
Bottom line, realtors are not appraisers. I provide data to help make recommendations of value, but I always state to new clients that these numbers represent my opinion based off of market data, but if they want true worth of their home, then a licensed appraiser needs to be consulted.
Rick
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