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Appraisals affecting our business

By
Real Estate Sales Representative with Keller Williams Realty Fenton/Clarkston/Gateway

Agents Beware!  You've all been on those listing appointments when the seller's say they want to "Test the market."  Well, I'm here to tell you, if you don't already know..."testing" doesn't work!  First of all, there is way too much competition out there right now of motivated sellers. If your potential clients home is not in the very best condition, has all the upgrades, and has the best price, let's face it. It won't sell!

Second,  if they are lucky enough to get someone to fall in love with their home at the high end of it's price range, they won't get it to appraise. Appriasers are running scared right now, and therefore being extremely conservative on their appraisalso knwing full well when it hits the banks underwriters they will heavily scrutinize all comparable sales. Although, I have seen some come from quite a distance.  Others will only use same neighborhood comps. 

The bottom line is, even if they get their price, it won't appraise on the high end unless you have extremely close recent comparable sales!  So, do your due diligence ahead of time on recently sold comparable properties close by, and price accordingly. The days of "close enough" are gone!  Good selling!

Comments(5)

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Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

We are getting prices swinging 10% in 45 days in some areas!  Close fast before the bottom falls out.

Sep 05, 2008 02:15 AM
Mike Butson
The Davis Company - Austin, TX
Realtor & Sales Trainer

I think we need to decline listings that are unreasonable in price. You will avoid a lot of wasted time and marketing money and there will be one seller that may respect, rather than loathe you in the long run. I've found a number of these folks to come back, once their listing has expired (At too high a price) with the other broker. Keep in mind, a listing is only as good as it's ability to sell.

Sep 05, 2008 02:21 AM
Evelyn Panning
Property Connections Realty Inc. - Alturas, CA

We have had some price fluctuation, but very little.  Our market has still held relatively stable on prices.  But very few appraisers will appraise in our remote part of California AND in Modoc County, EVERY PROPERTY is UNIQUE.  You can't walk into a neighborhood and immediately pick out the homes with very similar floor plans -- doesn't exist here.  So guessing at where an appriasal might come in is anyone's guess. ~ Evelyn

Sep 05, 2008 02:24 AM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Matt~I would agree. If a seller wants to test the market, I'm not the agent for them. Even when I do take a listing, I am sending bi-monthly reports of the active competition, and the pending/closed sales since the market tends to be more roller-coaster-like with the influx of foreclosures and short-sales.

Sep 05, 2008 02:34 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Appraisers are ultra conservative, at this moment, and the "right price", and the home with good appeal, is the key.

Sep 05, 2008 05:18 AM