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Old 12-27-2013, 05:55 PM
 
9,496 posts, read 8,358,305 times
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Prices in our neighborhood are all over the place. Most of the houses are similar in size, but some homes are 500-600 sq. ft. bigger than most of the rest (including ours). We interviewed 3 agents before signing up and all said we should ask in the same price range. It turned out to be too high, even though some in our neighborhood have sold at that price previously, and higher. There have been few houses on the market this fall and the agents thought we could get the higher price. We didn't. Obviously, those other homes that sold must have had more updates, etc. than ours.

Rather than hope the next agent we choose can come up with a correct asking price, we were considering having the house appraised so that we can get a professional opinion. Is this a good idea? And if the appraisal is low, can this come back later to hurt us in some way?
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Old 12-27-2013, 06:24 PM
 
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That is what I have done with 2 of the houses that I sold myself. Both sold the week they went on the market.

The one where I let the realtor tell me what to price it at sat for 4 months.

We had an appraisal done on the house we are about to sell. Good thing too. 2 different realtors wanted to list it at 20k above the appraised value.
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Old 12-27-2013, 06:27 PM
 
534 posts, read 518,930 times
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Getting an appraisal can be helpful in a few ways.

1. You will be getting an unbiased opinion. The appraiser gets paid the same regardless of the value.

2. You will get an idea of what value would possibly be approved for financing.

3. You can potentially use it to negotiate an offer.

The appraisal can't come back on you later, unless you show it to someone. The appraisal is not recorded anywhere and is confidential information. You are the only one who can disclose the contents.

If you are looking for an appraiser, call a few and talk to them first. An appraiser should take the time to explain the basics to you and his/her experience with your type of property and location. DON'T shop by price. Find one willing to talk to you and answer your questions.

Good luck with selling your home.
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Old 12-27-2013, 09:04 PM
 
Location: Ocala, FL
4,944 posts, read 7,860,604 times
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Quote:
Originally Posted by thebigW View Post
Getting an appraisal can be helpful in a few ways.

1. You will be getting an unbiased opinion. The appraiser gets paid the same regardless of the value.

2. You will get an idea of what value would possibly be approved for financing.

3. You can potentially use it to negotiate an offer.

The appraisal can't come back on you later, unless you show it to someone. The appraisal is not recorded anywhere and is confidential information. You are the only one who can disclose the contents.

If you are looking for an appraiser, call a few and talk to them first. An appraiser should take the time to explain the basics to you and his/her experience with your type of property and location. DON'T shop by price. Find one willing to talk to you and answer your questions.

Good luck with selling your home.
Excellent advice !!!
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Old 12-27-2013, 09:32 PM
 
Location: Florida -
10,118 posts, read 13,019,939 times
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IF one is willing to spend the $300-$500 for a formal appraisal, they can choose to selectively reveal it to potential buyers IF it is near the asking price. One could even advertise the house as "Appraised on (date) at $##.##. While it seems like a good idea, I suspect there is a downside ... since very few people seem to do it.(?) (For example, what should a seller who believes their home is worth $300K do ... if they pay for an appraisal that comes-in at $240K (which is less than their mortgage balance?)
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Old 12-28-2013, 03:56 PM
 
Location: Chesterfield, VA
1,222 posts, read 4,841,343 times
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I had clients get an appraisal and they STILL listed it $20K over appraisal, and $25K over my recommended list price!!
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Old 12-28-2013, 04:12 PM
 
Location: Berkeley Neighborhood, Denver, CO USA
16,285 posts, read 24,936,157 times
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Default To for a re-think

Quote:
Originally Posted by jghorton View Post
what should a seller who believes their home is worth $300K do ... if they pay for an appraisal that comes-in at $240K
Re-think selling.
The lender's appraisal will also be close to $240K.
Therefore, no buyer will pay $300K.

If you cannot get a good feel for market value from your selling agent's DATA, then do an appraisal.

We did not do an appraisal when we bought our current house as we:
1. paid cash
2. had a very good feel for market value

We did however have an appraisal done on a condo we were thinking of buying. Asking was $545K and our buyer's agent said: I have no idea as there just are not any comps. The appraisal came in at $470K. We walked away. It sold for $472K 10 months later.
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Old 12-29-2013, 10:43 AM
 
9,496 posts, read 8,358,305 times
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Although our house is larger than some others in my subdivision of 200+ homes, I feel like some of the other homes have more updates than we do. Although we are real estate savvy in general, we are having a problem deciding what a 3rd bath upstairs would be worth, what a sunroom is worth, and what a fancy finished basement or a 3 car garage would be worth (some we have and some we don't) in a 20+ year old home.

It's hard for us to compare our house to the other homes, as far as asking price. Is this something my (new) realtor should be able to do? Our first realtor gave us bad advice and the house was priced way too high. We don't want to do that again in the spring.
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Old 12-29-2013, 11:08 AM
 
Location: NJ
17,579 posts, read 43,120,931 times
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Quote:
Originally Posted by jghorton View Post
For example, what should a seller who believes their home is worth $300K do ... if they pay for an appraisal that comes-in at $240K (which is less than their mortgage balance?)
I would then ask why they thought their house was worth 300K. Something is off. I would also question how things will go if they sell for 300K and if the buyer can get financing. As for the value coming in less than their mortgage balance the answer is "it happens". Someone's mortgage value has zero bearing on what their house is worth.
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Old 12-29-2013, 11:12 AM
 
Location: NE Mississippi
19,630 posts, read 11,939,610 times
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......and if you really want the house to sell, get a home inspection, too. A buyer presented with a recent home inspection and appraisal will have very few reasons to get nervous.
And the seller (you) will have a strong position when it comes time to negotiate.
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