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Do any of you know if it is easier to sell a home that is priced at less than the appraisal price? We have had our home for sale for some time, but never had an appraisal done until a few days ago. Thanks for your input.
Don't know about other people, but for me "priced less than appraisal" doesn't mean much to me these days, what with dropping home values and all the news about artificially inflated appraisals.
In my home search, it hasn't been unusual to see homes sell for less than appraisals and/or assessments.
You will sell the house at the price the market will bear. You can't sell it for more than the market will bear but you can sell it less than the market will bear. (This is general information from economics - certainly you could have buyer that may overpay but it's unlikely).
The apprasial is good for you to know so you have a rough idea of how much the place is worth. I'd start by listing it a bit higher (you can decide what a "bit" is) and then drop the price if it doesn't sell.
The appraisal is rough, though, so I wouldn't put too much stock. Your house will sell if the price is what the market will bear.
Don't know about other people, but for me "priced less than appraisal" doesn't mean much to me these days, what with dropping home values and all the news about artificially inflated appraisals.
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1. Values are not dropping everywhere. Here in Oklahoma we are doing well in that department.
2. As with everything in life, you get what you pay for. Most of the bad and inflated appraisals are done by what we refer to as "skippies". These appraisers will do appraisals for much less than a professional appraiser charges, will turn them around within 24 hours and have no analytical abilities beyond just filling out the form.
If people and lenders would hire the professional appraisers they would have to pay a little more and wait a little longer for the report, but they would get a solid product.
One other thing is that buyers usually need financing and that financing is usually contingent on the loan to appraised value. In other words most buyers don't have the cash to sink into a home that is sold for greater than its appraised value. Of course, before the bubble popped the appraisals just about always came in high. I doubt if that is happening anymore (high appraisals that is).
One other thing is that buyers usually need financing and that financing is usually contingent on the loan to appraised value. In other words most buyers don't have the cash to sink into a home that is sold for greater than its appraised value. Of course, before the bubble popped the appraisals just about always came in high. I doubt if that is happening anymore (high appraisals that is).
It probably still happens because shockingly enough, lenders STILL won't do proper reviews on appraisals. Too expensive. Go figure.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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I think selling right now is very complicated and frustrating. There are already a glut of homes listed at below appraisal prices.
I also think, IMO, that having a few CMA's done by different realtors, and pricing well below those CMA's will give you a competitive edge in today's market. That and making sure your house is in prisitine condition.
It may help those buyers who don't have a down payment or portion thereof. Buying a house below appraised value will gve them instant equity.
Nonsense.
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Don't believe everything you read...
