Home Selling in Indianapolis>Question Details

Demetrius, Home Owner in Indianapolis, IN

Our house appraised for $50,000 above the next most expensive house on our street, is this a bad thing if we try and sell?

Asked by Demetrius, Indianapolis, IN Wed Aug 8, 2012

We bought it for the lot and house size. But to appraise it they had to go miles out of the way to find houses similiar in lot and house size. Did we screw ourselves? Will anyone pay 50,000 given that other houses on our street come nowhere close?

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Answers

4
Tough question. If you are trying to sell it, the agent will most likely try to find comps in the same neighborhood. At the end of the day, a house is worth what a ready, willing, and able buyer will pay. Buyers don't really concern themselves with appraisals, because they will look at a number of houses, and decide for themselves if the location, price, and condition suits their needs. Be careful and listen to your aqgent.
0 votes Thank Flag Link Thu Aug 9, 2012
Hi Demetrius,

Does your street look good; are the other homes on your street
good looking properties? Is your new neighborhood filled with
bank owned properties? If you bought the most expensive home
in a nice neighborhood, take care of it. But don't add expensive updates
to it. Don't encumber it with a lot of debt on an equity line.

Low priced/cheap looking/distressed neighboring homes can have
a dampening effect on your pricing.

The location is important.

We have some very nice neighborhoods in Indianapolis that rarely
have sales. The Appraiser can go outside of the neighborhood to
find recent comparables when they have to because they MUST use
recent sales. Some neighborhoods in which I've worked had no
recent sales comparable to the home I was working on, but when I
looked back a year or two in the sales record, I found comparable,
more expensive homes that sold there.

Did you pay $50,000 more than any other home in the neighborhood
has ever sold for?

If you ever sell your home, you will sell it to someone like yourself who
values the size of the home and the lot. Selling is a type of competition.
You want to market your home as the nicest home at the price at which
you list it. Always market the benefits.

If your appraisal was for a refinance, Appraisers are looking to give it
as high a value as they dare. If your appraisal was for a purchase,
Appraisers are very conservative now in the value they give.

I hope that helps. Enjoy your home.

Marita
0 votes Thank Flag Link Thu Aug 9, 2012
No, I did not pay 50,000 more. I talked the owner down almost 50,000 do to how many repairs I would have to make. I pretty much gutted the entire house and put in a new kitchen. We bought the house because it was close to where we both work and in a good school system. My street personally does not have the best looking houses and right now 2 are selling, one for 124,000 and the other for 67. Most the houses are probably around 2000 sq ft with about and a little less than half an acre. My house is 4000 sq ft and I have 5 acres. The guy that built the neighborhood reserved land for himself and I believe retired in this house.
Flag Sat Aug 25, 2012
I would say that is a good thing and an appraiser had to use proper guidelines to appraise it. It should not only help the neighborhood in general buy hopefully, others will sell at or near that price. The problem is when homes do not sell for a period of 6 months or so and then they sell for less. I would be more concerned if it did not apppraise.
0 votes Thank Flag Link Thu Aug 9, 2012
Appraisal price is not the same thing obviously as the selling price! Selling price is the market price and what people are willing to pay. If you had it appraised to get refinanced and don't have much equity, then that might be a problem. If you have enough of a cushion to negotiate, then you should be okay.
0 votes Thank Flag Link Thu Aug 9, 2012
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