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I don't understand why the appraisal price is significant? Wouldn't the most recent sales be a better gauge of where to list the house? It doesn't matter what the appraisal is, potential buyers don't want to buy the most expensive in the area. They're going to look at what others have sold for, and try to buy at that level or lower. Also, unless you're dealing with a cash buyer, potential buyers are going to get their own appraisal, and if their price is close to or above appraisal, they may look to renegotiate the price.
I wouldn't base your selling price on your appraisal alone. An appraisal can vary significantly. Let's say your appraisal is for $300k. Buyer A's appraisal may come in at $305k or $320k, or 275k. There can be a lot of variation.
If it were me, I would have 3 Realtors come in and do a market analysis and tell you what THEY would price the home at. Compare them to your appraisal to find the "range". Then price it at the low end of the range. I say the low end of the range because, selling your house is a pain!
The goal should always be to sell quickly. If you can afford to sit on it, don't list it now. That's my 2 cents! Good luck!
I don't understand why the appraisal price is significant? Wouldn't the most recent sales be a better gauge of where to list the house?
An Appraiser/Appraisal utilizes these type of sales.
The sales comparison approach and the other two approaches to value, rely on the Principle of Substitution.
It doesn't matter what the appraisal is, potential buyers don't want to buy the most expensive in the area. They're going to look at what others have sold for, and try to buy at that level or lower.
The Principe of Substitution takes into account the thoughts above.
Also, unless you're dealing with a cash buyer, potential buyers are going to get their own appraisal, and if their price is close to or above appraisal, they may look to renegotiate the price.
Then both the buyer and seller will be knowledgeable and well informed, as such the definition of Market Value suggests.
Two, three, and even four Independent Appraisers will come in within 5% of each other, as well.
Well I guess your property is located on Times Square or someplace similar. But for the rest of the country if you start off at the apprasied price and really want to sell my guess is you will follow the market down to about 50% of your original price.
Not sure what you meant by this but will take a guess that there may be some confusion between using the appraised value as reported on the property tax bill and an appraisal that was very recently for this subject property.
Using the appraised value off the tax bill is not a sound choice for determining market value.
Your appraisal value (professionally done) does not matter! The only appraisal that matter is the 'bank appraisal'. Remember, the appraiser who evaluated your home was on your side. If you list your home at the appraised value or 5% more, expect the shortcoming (don't be surprised) when the bank does the appraisal.
Your appraisal value (professionally done) does not matter! The only appraisal that matter is the 'bank appraisal'. Remember, the appraiser who evaluated your home was on your side. If you list your home at the appraised value or 5% more, expect the shortcoming (don't be surprised) when the bank does the appraisal.
EXACTLY.
And these days very often no two appraisals are alike.
Our OP is going about this backwards and should not have wasted her money on the appraisal.
She needs to have a local realtor who works her area often give her a price based on SOLD COMPS in the area.
This is the only true way to assess current market value.
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