Home Selling in 28023>Question Details

Davisse, Home Seller in 28023

should i get my house appraised before i sell it?

Asked by Davisse, 28023 Wed Jun 9, 2010

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9
Holly also seems to be misimformed about the appraisal process. Appraisers don't just use closed sales in determining value, they also use active listings, pending listing, withdrawn listings, expired listings.

Along with analysis of a complete listing history of the subject and comparable properties, and complete transaction history of the subject and comparable properties. Also the LPSP% (list to sale price ratio), DOM and ADOM (days on market/accumulated days on market), supply and demand, inventory supply and type, time adjustments, analysis of environmental, economical, and social market factors, reproduction and/or replacement cost, depreciation, and a host of other factors and data required by regulations and/or lender/client requirements.

The appraisal report delivered is a "summary" of the complete appraisal which is actually the work file containing all information acquired for determining the value or value range conclusion.

Which is why it takes a minimum of 18 to 24 months to obtain an appraisal license, whereas, a real estate license can be obtain in 2 to 8 weeks.
1 vote Thank Flag Link Thu Jun 10, 2010
Sylvia is incorrect - Appraisals are good for 3 to 6 months - an FHA appraisal stays with the property for 4 to 6 months. Appraisals do provide the "market value" as of a specific date (effective date of the report - when the appraisal was completed). However, a CMA is also "good for ONE DAY ONLY" - when it was completed and only for a suggested selling price. The selling or purchase "price" from a CMA is not the same as the "market value" from an appraisal. That is why appraisers are licensed by the State to determine "market value" of real estate, and realtors are licensed by the State to "sell" real estate.
1 vote Thank Flag Link Thu Jun 10, 2010
Sure you could get a appraisal done, but what is it that you want as end result ?
0 votes Thank Flag Link Sun Jun 13, 2010
I think if you talk with two or three realtors you will get a good idea of what your home could sell for. If these estimates are drastically different - more than 5-10% apart, you may want to consider an appraisal. While appraisers are licensed to determing the fair market value of property, thay only use closed sales, which means all their sales data is in the past. Your realtor should also consider what your competion is and what has not sold, expired listings and withdrawn listings. What an appraiser can prove on paper and what your home should bring on the open market are often not the same number. Get a good realtor to guide you.
0 votes Thank Flag Link Thu Jun 10, 2010
Here is the advise I give sellers. If the price you want for your house can be easily supported by recent comparable sales then it may not make sense to have an appraisal done. An appraisal "may" become a material fact about the property, especially if a buyer ask if an appraisal has been done recently. If the appraisal is favorable to your position then things may be ok. But what if the appraiser comes in with a value that is way below your asking price.

I know appraisals "should be" very close to one another. But in today's maket where comparable sales may be hard to find, it leaves more to subjective opinion on the part of the appraiser. I have seen two appraisals on the same house done a couple of months apart come up with values tens of thousans of dollars apart. And timing can be everything when it comes to an appraisal.

Here are some examples of when it may be good to have an appraisal done:

1) The price of the house is very hard to arrive at. There are no or very few comparables or the house is so unique, such as a log cabin that may not have any direct comparables.

2) You want to be sure the house will appraise for the price you are asking. I have seen some desireable homes, say in a historic area, that would never appraise for the price they were contracted for. And if the buyer needs a loan and the appraisal does not come in at your price it may be difficult for the buyer to close if the bank cannot justify the price for the loan.

3) If you the seller cannot seperate yourself and emotions from the transaction itself. If you built the house with your own bare hands and you know that every single nail went in with loving care, you may think the value is much higher than it actually is. An appraisal can give you an unbiased opinion of what it is really worth.

Hope this helps.
Barrett Powell
0 votes Thank Flag Link Wed Jun 9, 2010
your listing agent should be able to provide you with a thorough comparative market analysis that will provide you with a good insight as to what your house is worth in today's market. normally prospective buyers will get the house appraised as directed by the bank or lending institute they are using for financing.

hope this helps
0 votes Thank Flag Link Wed Jun 9, 2010
Hi,

A good agent that sells many homes in your area can usually price it out much like an appraiser would, and it would save you a few hundred bucks as well. Just make sure it's someone who knows your area and has done sales there in the past, as some neighborhoods the pricing can vary by street. It will also give you a chance to get to know the agent better in case you decide to sell the home.

Be careful not to sell with the agent that gives you the highest price! They sometimes do that in order to get the listing but then do not perform like they should to sell the home.

Max Boyko
RE/MAX Gold
0 votes Thank Flag Link Wed Jun 9, 2010
Hi,
Appraisals are different if they are for tax purposes, re-finance, or mortgage. Work with your Realtor to figure out what is best. Personally, if I were selling my house, I would get an appraisal to know how the bank will value it and it sets my own expectations. So many houses that go on the market now are over valued that it would have been useful for those sellers to have an appraisal. Remember, the appraisal is good for only 90 days.

If your house is in a development of similar houses, an appraisal probably is not needed unless you have made major upgrades. Your Realtor can compare your house to what has sold in the past 30, 60 and 90 days.

More important is to work with a good Realtor who can guide you through the process. These days, selling on your on is fraught with problems. Every transaction I have has unforeseen hurdles.

Good luck
Web Reference: http://CrazyVivHomes.com
0 votes Thank Flag Link Wed Jun 9, 2010
Hi Davisse:

It will be prudent to call a Realtor or a Lawyer who specializes in Real Estate in your area, and can give you the comparables. Also, it would make sense for you to tally up any upgrades you have done to the home.

You can fnd several on this board.

Goodluck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Wed Jun 9, 2010
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