Home Selling in Gulf Shores>Question Details

Susan Crisp, Other/Just Looking in Villa Park, IL

What would be the reason for a seller to list a house above the appraisal price?

Asked by Susan Crisp, Villa Park, IL Wed Nov 11, 2009

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The home may be located close to a foreclosure, in which case the home may appraise for less than the seller feels it is worth. That recently happened to me. If the comparable property used in an appraisal or comparable market analysis happens to be a foreclosure with a rock bottom price, that could pull the appraised home value right down with it.
In this area there in an abundance of foreclosed properties, and while it is wise for property owners to price to sell they don't want to loose their shirts doing so. Also I agree that many property owners have emotional ties to their homes that need to gently be severed in a buyers market. I hope this helps.
Peace, Amy
Web Reference: http://eraclass.com
0 votes Thank Flag Link Thu Dec 17, 2009
As Lance stated - they just want more for the property and don't really know what the market is dictating.

Another reason - at least in my market area, and I'm sure it applies to other market areas - the seller relies on the information and sales pitch from the seller's agent looking for a signed listing contract and increased commissions. Which preys on the seller's emotional ties to the property. Not all, but many agents try to falsely drive up property values with inflated sale prices, much as what was done during the boom years - 2004, 2005, and 2006.

An intellegent seller would obtain a pre-listing appraisal to ascertain the market conditions, marketability of the property, and what may be needed to achieve the most probable selling price, which the market dictates, prior to putting the property on the open market.

An intellegent buyer would do the same by acquiring a pre-purchase appraisal, which could potentially save them hundreds and/or thousands on the deal, before making an offer, and obtain unseen or non-disclosed aspects/conditons in addition to the actual market conditions and reaction to the type of property and related elements.
0 votes Thank Flag Link Thu Nov 12, 2009
None other than they want more. It is not uncommon to see sales canceled or contract prices lowered after an appraisal is finished in todays market. Most contarcts are contingent upon financing and the property appraising for the contract price. If it comes in less, the buyer can not get a loan.
0 votes Thank Flag Link Wed Nov 11, 2009
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