Do Pittsburgh Homes Usually Sell for Appraised Value? (Penn Hills, Glassport: comparable sales, sales)

[fishy76]

I am interested in a house being sold by owner in Squirrel Hill ... the owner is going to get the house appraised to determine the selling price.

Do homes in Pittsburgh usually sell right around their appraised value?

[BrianTH]

In lots of cases, potentially including a home in Squirrel Hill, there are not enough exact comparables to make an appraisal more than an informed guess, and appraisers may in fact disagree on the best comparables to use, leading to different results depending on who you ask.

So not necessarily, no. Personally, I'd ask for at least a little off (if it is a FSBO, they are saving around a 6% commission--you could ask to split that, assuming you aren't using an agent yourself).

[Love2Golf09]

Originally Posted by BrianTH

In lots of cases, potentially including a home in Squirrel Hill, there are not enough exact comparables to make an appraisal more than an informed guess, and appraisers may in fact disagree on the best comparables to use, leading to different results depending on who you ask.

So not necessarily, no. Personally, I'd ask for at least a little off (if it is a FSBO, they are saving around a 6% commission--you could ask to split that, assuming you aren't using an agent yourself).

The OP is talking about an appraisal, not a bpo. Technically, the appraisal can go back 6 months in time for 3 sold comparables that are within 10 years of the subject, within 20% gla, similar style/quality of construction, and within a mile of the subject. Add in 3 current listings that have been on the market for less than 6 months and you have yourself an appraisal. Most appraisals would have no problem using properties from shadyside or point breeze, if one or two are necessary. Also, most appraisals will have adjustments for an extra room, newer roof, pool, brick vs. Siding etc. Appraisals are a lot more than just an informed guess. Two appraisals should not vary by more than 10% if done within the same year. That's a general rule, but in a more stable market like Pittsburgh, the variation should be closer to 5%. Perhaps you're confusing an appraisal with a property assessment? If two appraisals are done within a year, in a stable area like squirrel hill, and the values are off 15%, 20% or more...then something is seriously wrong. This is not a wild guess or opinion. Someone is right and someone is wrong. It usually occurs when some idiot appraisor that doesn't know the market uses comparables from Oakland or greenfield on a home in squirrel hill. And honestly, I don't have access to MLS, but I would find it extremely difficult to believe that an appraisor could not find at least 3 sold comparables in squirrel hill within the past 6 months. It would have to be an extremely unusual property for that to happen and an appraisor not even be able to find a similar property and mske some value adjustments. Sorry Brian, but your scenario just doesn't seem plausible.

And yes, the vast majority of properties sell for above appraised value and within 90 days. Of course, that's a general statement towards average and above quality homes in desirable neighborhoods. A dump in Beltzhoover, Penn Hills, Glassport, or Lincoln-Larimer will sit on the market for a very long time, even at rock bottom prices.

Squirrel Hill is a quality neighborhood. If it is a decent property and the home is priced correctly, then I'd expect multiple offers, at or a few thousand above the appraised value, and for it to sell quickly. With an agent, it could have an accepted offer within 30 days. With a FSBO property, that could delay things since it won't be in the MLS and they will have to market it themselves.

[BrianTH]

Yeah, I know how appraisals are done. And everything I said is true--when there are a lot of possible comparables but none are exact, the appraiser has to choose which to use, and you can get differences. I agree that usually there won't be a delta of more than around 10%, but that is a significant delta if you are trying to decide how much to pay for a property.

[CaptainPittsburgh]

Originally Posted by fishy76

I am interested in a house being sold by owner in Squirrel Hill ... the owner is going to get the house appraised to determine the selling price.

Do homes in Pittsburgh usually sell right around their appraised value?

In terms of statistics, I have no idea, but for anecdotal evidence, I purchased my home for very near the appraised value, and my real estate agent did say that it's a common occurrence for that to be the case.

[gg]

Appraisals are sort of an odd thing. If the appraiser knows the market where the home is located, they can be pretty accurate. If they don't, they can be off the mark. All this being said, the best people to evaluate a home are real estate agents that focus on that neighborhood. Problem is, some agents will evaluate a home at a higher price to try and "buy" a listing, so they get a sign in front of your home. Just so there is no confusion, "buying a listing", means an agent will tell an owner, I can get you X amount of dollars for your home, knowing they really can't, but want the listing and hope to reduce the price at a later date. They do this to get their sign up there. So what I am saying is, appraisals can be pretty accurate, but sometimes they are not. Sad, but true. Years ago appraisers for bank refinances might inflate a value if the home owner was really strong, so the bank could get through the refi. I believe those days are over, for obvious reasons.

All this being said, it is hard to put a good value on a home, but if you put some time into it, you can do it yourself.

1. Look at the subject property. How many bedrooms/baths condition and what it has to offer.
2. Look at comparable sales within the last 6 months in that area. Walk by the homes and compare them as best you can.
3. Look at other homes on the market in that area. We call them the wish list. If a home on that wish list is a better deal, that can be a factor. If there are a bunch of homes that are asking way more, that is why we call it a wish list. Probably overpriced.

Want to save yourself some time, get the appraisal the owner has and look at what homes the appraisal compared the home to. Walk by them and decide if you feel they are a good match.

One more thing. Try and find out how long the seller has been trying to sell that home. Most FSBO homes have a few local people look at the home and are indeed real buyers and if those people don't buy it, they probably think it is overpriced. If it has only been on the market a couple of weeks, then it doesn't tell you much. Been on over two months the price is probably the issue.

[BrianTH]

I agree doing your own double-check of the comparables is a a good idea.