Home Selling in 70810>Question Details

Dee, Home Seller in Baton Rouge, LA

Which price should I list my home at, the appraiser's or the realtor's?

Asked by Dee, Baton Rouge, LA Mon Mar 7, 2011

I will be placing my home on the market within the next month. My appraiser priced my home $15,000 more than the potential realtor did, based on her comps. What's with that? Should I list it at the appraisal price or the realtor's price? Realtors comps included two really weird homes that have been on the market forever. Appraiser's price included 8 homes in a 1 mile radius of my home with two homes in different subdivision. Don't know what I should do.

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Answers

9
Here is what to do:
1) Get the TREND data for the past 6 months..trend data takes the sales, inventory and other such data and gives you a eagles eye view of the marketplace. It is VERY important to know who your competition is, and how many houses are just like yours that have sold AND are for sale.
2) Get the list of ACTUAL SOLDS in the past 6 months
3) Look at HOW LONG these houses took to sell

Get all this real factual information from your Realtor...if your Realtor does not understand this terminology, find another...do NOT compromise getting this information.

Armed with 1 through 3, and analyze your home...looking at how low will you go to get your house sold relative to the competition..and what you need to do to your house to put in on the frontline in getting it seen and sold. Your Realtor can show you what you need to do..freshen up, do the curb appeal, etc.

Appraisers opinions are just that...opinions. Use real numbers in a real timeframe. When you list your house have means and methods to track how many people look / hit websites where your home is advertised. If your Realtor cannot provide that info, make them list the house on trulia.com and send you weekly updates as a minimum. This way you can analyze real traffic data to know if your house is priced right and if the marketing is working.

Selling your home is not a static proposition..you and your marketer/Realtor needs to put the word out and get immediate feedback from all sources...this is something an appraiser does not do..and the main reason you should not use their data for your purposes.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Sun Mar 13, 2011
IF your appraisal is current, ie within the last 6 months, then that would be the more accurate valuation.

Real Estate agents are not appraisers, loan officers or inspectors even though some of them think they walk on water....they dont!

And what do you mean by "realtors" price?? What the heck? Its your house !
0 votes Thank Flag Link Wed Mar 9, 2011
Have your realtor run an absorption rate for you along with details in the CMA on concessions that took place in order to get the deal completed. That will give you some more specifics for you to price it correctly for your needs. Maybe you need to be out in 6 months and the apsorption rate says you are likely to sell in a year and a half. Well, know you know pricing at the high for the area isn't going to get you what you need. Or maybe the average sale is giving $6000 in concessions, you need to know this too. Honestly, your realtor has access to some great reports, just ask for some more details. Call me if I can help in any way. Mags 505-8725
Web Reference: http://www.justcallmags.com
0 votes Thank Flag Link Tue Mar 8, 2011
The two values actually serve different purposes in the market place. The appraiser's job is to support a purchase price for a home under contract and let the lender know that the bricks and sticks are worth what the market has said it is willing to pay for the home. The Realtor's evaluation is based on comparable prices of homes already sold in your area to determine the sellability of your home...what the market has said it is willing to pay for that product. You must be concerned with absorption in the market place. You may be able to price your home higher and get it to "make" the appraisal, but if the market is not willing to pay that price for your product, you will pay the carrying costs of having it sit on the market and become a stale listing. Lowering the price after trying to get more is an option but keep in mind that the pool of buyers has already seen the house at that point and probably won't come back to it. The best advice I can give is to call me about giving you an evaluation of the house. I live there.
0 votes Thank Flag Link Tue Mar 8, 2011
Dee,

It is good that you are questioning this difference.....

A $15,000 difference is not a big issue.....we are aware of appraisals that were done by two different appraisers on the same property that were $50,000 apart.....that's a problem.

As the seller, you should go after as much as you can get for your property but keep in mind that if your future buyer needs to finance their transaction, it will be imperative that the property appraises for the contract amount. So pricing the property at the appraised value may not be allowing you the cushion you will need to guarantee a successful transaction.

Our recommendation....considering a number in between may make the most sense.

Good luck,

Bill
0 votes Thank Flag Link Tue Mar 8, 2011
Dee,
Appraisals and CMA's are snapshots in time from two different perspectives. While the appraisal price may be more desirable to get, your Realtor may have your best interests in mind. Over pricing results in a lower eventual sales price. If the two opinions were the only two options, I'd go with the Realtors.
Now you have another option, get one or two more agents to provide you with their opinions. You are not on the market yet and it's not unheard of for two agents or two appraisers to see things differently. Just remember the highest opinion may not be the best one for you. The ultimate determination of value will come once you are on the market and get an offer.
0 votes Thank Flag Link Mon Mar 7, 2011
Those are two really great answers! The price that you list your home at is based on a lot of factors. Do you have to sell quick to move out of town or avoid a foreclosure situation or can you afford to wait for the best offer available? Does your home have the same amenities and features of the other similar homes in the comparables or does it far exceed the others? Are the homes in your neighborhood on the market much longer in the range of where it would be listed with the extra 15k or is it about the same? Lastly, if you were the buyer, what do you feel is the right price point for your home when you compare it to the other homes would you pay the extra $15,000? My point is that each seller's needs are different and any quality agent should ask the right questions to better understand you and your needs when listing your home! Whatever you decide, I hope you can get a buyer that will purchase your home in a timeframe and price point that works for you.


Rinaldi Jacobs
Harris Manor Realty
0 votes Thank Flag Link Mon Mar 7, 2011
Dee,

Appraisers and realtors can both be helpful in pricing your home. Appraisals can be helpful because they give an opinion on price based on recent comparable solds-but it's just that, an opinion. In today's market, buyers are not only looking at solds but at the competition to find what homes offer them the most value- factoring in location, condition, amenities and price. In today's market, it's important to work closely with your realtor to price your home to be in the market, not sit on the market. If you're interested in a second opinion, feel free to give me a call or email me and I'd be happy to provide you with a well researched overview of the market and an unbiased opinion on pricing your home.

Danielle Cooley
Keller Williams Realty
danielle@daniellesellshouses.com

225 810-2437 Cell
0 votes Thank Flag Link Mon Mar 7, 2011
Appraisers are who the mortgage company will contact to reach the purchase price. So if you have an appraisal i would say shoot for that price. Now keep in mind if at fair market value, it may not be as quick of a sale vs the 15,000 lower price.
0 votes Thank Flag Link Mon Mar 7, 2011
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