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In my State, it is common for the Title company to prepare documents per the purchase contract instructions.
That said... each time the parties knew what they were willing to pay and the price they were willing to sell.
Since you have questions about the value... an appraisal makes sense.
Just realize an appraisal is still an opinion of value for one specific moment in time.
Also realize that appraisals are not generally binding... parties are free to accept or reject and part ways.
The seller has the burden in my State to comply with consumer protection statures... not really a problem till it is and then the great deal becomes a nightmare.
Appraisal is your answer. There is nothing else in this situation. And the $250--$400 for a market value appraisal is a great investment under the circumstances.
However, then the art of the deal takes over. How will it be settled so the seller thinks they got full value and buyer thinks they got a bargain?
Will the seller sell for less than appraisal value? Will the buyer pay full appraisal value?
Dang, what is this, a pile on with answers from Realtors I find agreement with?
Caveat here is that the dealing aspect of making and getting the purchase done isn't rocket science but you do need knowledge and skill. Go pick up some books (or e-books if that is your thing) and read on negotiating tactics and how to motivate and create incentives for the other party. You probably use many of the necessary tools already but putting them into perspective and linking them together to form a good strategy is often very helpful.
I agree zillow isn't ideal, just trying to find a way to get non-realtor idea of pricing.
If you take anyone's advice (Realtor or non Realtor) on the interent on how to price your home you are making a huge mistake. You need someone that knows your neighborhood and has actually been in your house to best advise you on price. Someone that compares relevent sold comps and research any seller concessions in those sales. Why in the world would you take pricing recomendations from anyone on the internet for a transaction of this magnitude? If you have a buyer lined up as mentioned in your first post, get an appraisal done.
Quote:
Originally Posted by MustangEater82
I agree, an attorney will be involved. Just seems normal is a realtor does some comps, to get an idea of related houses in the neighborhood. To help set a sale price or is it normal to do a paid appraisel right away?
You stated you had a buyer lined up, so it sounds like you don't need a Realtor. Are you expecting a local Realtor to run comps for you and advise you just for the fun of it? You could probably find one to do that for a fee, but probably woulnd't be much less than an appraisal. Ever heard the phrae "penny wise pound foolish"
Appraisal is your answer. There is nothing else in this situation. And the $250--$400 for a market value appraisal is a great investment under the circumstances.
However, then the art of the deal takes over. How will it be settled so the seller thinks they got full value and buyer thinks they got a bargain?
Will the seller sell for less than appraisal value? Will the buyer pay full appraisal value?
Agree. An appraisal here is $400. It is a no brainer to get one done.
Just to pile on - Get an appraisal. You can nickel and dime alot of things, but you still need an appraisal if your not 100% certain on what you want for the price.
If you take anyone's advice (Realtor or non Realtor) on the interent on how to price your home you are making a huge mistake. You need someone that knows your neighborhood and has actually been in your house to best advise you on price. Someone that compares relevent sold comps and research any seller concessions in those sales. Why in the world would you take pricing recomendations from anyone on the internet for a transaction of this magnitude? If you have a buyer lined up as mentioned in your first post, get an appraisal done.
You stated you had a buyer lined up, so it sounds like you don't need a Realtor. Are you expecting a local Realtor to run comps for you and advise you just for the fun of it? You could probably find one to do that for a fee, but probably woulnd't be much less than an appraisal. Ever heard the phrae "penny wise pound foolish"
Huh?
No one is going to go off something based off the web for a pricing of a house. I understand there is a little bit more involved in this.
Typically... When you have a realtor, they put together comps and what they feel your house should be put on the market as well as what you have.
A Realtor may not be needed at all that is why I was asking is there an option other then the typical hire a realtor and typical commission. We were not aware if there was another process OTHER then a straight appraisel, even if there was a fee. I thought people that sold without a realtor may have had a common route they used that was different, because they may appraise the house, have it for sale, appraisel gets kind of old, title companies may require additional appraisels, next thing you know you are getting 1-3 appraisels done in the matter of a year or so.
Looks as if a straight appraisel is the way to go for the situation for now.
No one is going to go off something based off the web for a pricing of a house. I understand there is a little bit more involved in this.
Typically... When you have a realtor, they put together comps and what they feel your house should be put on the market as well as what you have.
A Realtor may not be needed at all that is why I was asking is there an option other then the typical hire a realtor and typical commission. We were not aware if there was another process OTHER then a straight appraisel, even if there was a fee. I thought people that sold without a realtor may have had a common route they used that was different, because they may appraise the house, have it for sale, appraisel gets kind of old, title companies may require additional appraisels, next thing you know you are getting 1-3 appraisels done in the matter of a year or so.
Looks as if a straight appraisel is the way to go for the situation for now.
You just need the one appraisal to get things started from a price negotiaion standpoint since you already have a buyer lined up. Title companies do not require appraisal, lenders do and some cash buyers will still want one. If this initial buyer does not work out, and you get a new buyer, then the buyer would pay for their appraisal in order to get their financing. For you it's just a one time deal.
Getting an appraisal is going to tell you one appraisers current opinion of value for the home. It is not going to solidify the deal. It is probably going to be a negotiation point. You are going to want to sell at the appraisal price, and the buyer is going to want to buy lower than that price because he's paying cash; plus he'll probably want another 3-6% that you would have paid an agent.
This is normal. Sellers want to save the agents commission for their pocket, and buyers want the seller to pass that savings along to them.
In hiring an attorney, know that you need a real estate attorney, and you must determine why you're hiring him/her.
Is he going to just review the contract?
Is he going to write the contract?
Is he going to do the negotiation for you?
Is he going to be providing guidance and advice during the escrow process?
The title company only acts as the escrow officer and processes the transaction in accordance with the purchase contract. They have nothing to do with the appraisal.
Quote:
Originally Posted by Mack Knife
...Caveat here is that the dealing aspect of making and getting the purchase done isn't rocket science but you do need knowledge and skill. Go pick up some books (or e-books if that is your thing) and read on negotiating tactics and how to motivate and create incentives for the other party...
In addition to knowledge and skill one needs experience.
Reading an ebook on negotiation is not going to make one a negotiator. Learning to negotiate also requires knowledge, which comes with much study over time; experience, which comes over time in doing a lot of negotiating to learn what methods work for you; skills, that are developed over time by putting the knowledge into practice.
If one has the knowledge and ability, there is no reason why they should not go FSBO if they desire. If they don't have the knowledge and ability, that is reason why they should not go FSBO.
In addition to all the other mainly good advice you've received I would add, don't get greedy and let an easy sale get away from you over a few thousand dollars. You're potentially saving 6% so selling it within that margin of the appraisal should be acceptable. In addition, if you order an appraisal you are under no obligation to share it with the buyer. You may want to if it's in your best interest. Congrats on what looks to be an easy sale without having to hire one of us idiot used house salesmen.
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