John El Hanafi
Your buyers agent can assist with all these issues
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Appraisal is usually valid for 6 months but in changing market appraisal changes like everything else. I wouldn't give much weight to an appraisal done by sellers. If you have your own comps, you should offer according to your comps. Sellers appraisals will be biased to sellers and banks appraisals will be biased towards banks. You may see abig difference in both appraisal values.
An appraisal done a year ago would hardly be worth the paper it is printed on, in my opinion, and I was a very active appraiser for many years.
Carol Murray Cei
ReMax Action Realty
For some lenders on a short sale 3 months is to out of date and a new appraisal or BPO has to be ordered.
When pricing a home for sale you need to look at what has sold over the past three months, what is currently on the market and how many have sold per month. Then you need to look at the absorption rate. This is the rate a which homes are sold per month. If you have 12 homes on the market in a specific area and there has only on average 2 homes sold per month over the past few months then the absortion rate would be 6 months of inventory. This will help your sellers decide if they want to sell quicker or slower.
REMEMBER: Being overpriced is like a prom date with a bad reputation. By the time you get the price down to where it should be, no one is interested because they have already seen you when you were overpriced.
Your seller needs to be educated. This is tricky since you have a vested interest. You might suggest that they speak to a lender of their choice about whether or not their appraisal is still good. This way a neutral party is letting them know. Hopefully the lender will also let them know that if the house doesn't appraise for their price, buyers would most likely not be able to get financing for it.
On the flip side, an appraised value may still be good from 12 months ago, but that wouldnt be known until the current marekt is analysed.
Have a new appraisal ordered, or hire a buyers agent and they will do a BPO or a CMA.
The appraisal would definitely be considered out of date. 1- 3 months is ideal. Convincing the seller without an intermediary is a bit tricky however.
They aren't getting "professional" advice and are obviously unaware that a year old appraisal isn't really worth the paper it's printed on. You, as the buyer, aren't a credible third party, since your interest is contrary to theirs.
If there was ever a case to have a buyer's agent, this is it. But choose wisely. You need someone who can "consult" with the unrepresented seller in a way that is non-threatening. Educating them and working on your behalf at the same time takes a true professional.
Better Homes & Gardens Real Estate Metro Brokers