New Orleans Real Estate - Home Pricing
I have always stressed the importance of pricing your home correctly from the beginning of your listing agreement...It is now even more important to price your home right! Why? Most of you may be thinking that property has a better chance to sell quickly when it is priced right from the start. Well, you are right. But there is another reason that pricing is so important. Many sellers probably do not even consider what I will be blogging about during their pricing considerations. The main reason that you MUST price your home correctly is....drum roll....APPRAISALS!
Yes, that's right, appraisals are a very, very important part of the real estate process in New Orleans these days. While there is most certainly credit available to consumers right now, it comes with a few strings attached. One of those strings is increased regulation of appraisals. Appraisers have a ton of strict rules that they have to abide by. A few rules are: comp's have to be sold within a shorter period of time, distance from the property is closer, square footage must be more similar, etc. These are not new rules, just a little more difficult to achieve.
Why do you care as a seller about appraisals? Most likely the buyer of your property will have to get a mortgage to buy it from you. In order to obtain a mortgage, buyers are required by lenders to order an appraisal. If the lender does not like the appraisal, the lender will not extend credit to your buyer and your contract falls through.
Moral of the story...If you truly want to sell your house, you must price your house with an appraisal in mind. Use the comparables that your agent gives to you...those will most likely be the same comparables that the appraiser will use! If you can justify the price of your house through comparables you should be just fine. However, if you base your price on your own inflated view of your property...you will DEFINITELY run into problems with your appraisal.
You may also be interested in: New Orleans Real Estate - The Definitive Blog
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This New Orleans real estate blog post was provided by Darryl Glade, Realtor with RE/MAX N.O. Properties. Darryl can be reached at darrylglade@remax.net or by phone at 504.451.8960. Darryl's real estate office is conveniently located in Uptown New Orleans at 8001 Maple Street. Darryl works throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Kenner, Westbank, French Quarter, and the Warehouse District.
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