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Shirley Baca, Real Estate Pro in Tucson, AZ

How important is a current appraisal to establish todays valuation for marketing?

Asked by Shirley Baca, Tucson, AZ Wed Jun 18, 2008

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Appraisals tend to be high in declining markets due to the fact thet they are giving you the value of what was, rather than what will be. An agent familiar with your area and market can help with projecting what will come based on active listings (one priced to sell anyway) and the impact foreclosures and short sales in the area are having. Getting an appraisal is still good if you can throw away the money on one, due to the fact it would only be good for you, right now, and cannot be used later on for valuation of a buyers loan.

Call one of the local Coldwell Banker offices near you and ask for the manager and have them tell you about "Schweppe" and what it can mean for getting your listing to sell rather than languish.

Good Luck!
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3 votes Thank Flag Link Wed Jun 18, 2008
Trust your REALTOR to prepare a Comparative Market Analysis!
Web Reference: http://www.homedramsaz.com
2 votes Thank Flag Link Thu Jun 19, 2008
I'm with David on this one. I routinely recommend appraisals to my clients who have difficulty accepting the value of their home and that want or need to sell quickly. Clients who have opted for an appraisal, have sold their homes within 60-90 days of obtaining the appraisal, and our area currently has over a two year supply of homes on the market.

I work in a small market (our mls had 1200 sales last year, total), and agents in our area generally know what appraisers have excellent reputations....Appraisals from these appraisers carry a phenomal amount of weight and credibility, and it definitely helps establish value in an uncertain market. I also tell my clients to be delighted if they get an offer for an amount close to that appraisal.... but to expect to get offers for 5-10% below that number.
Yes, CMA's are OK and are effective at establishing a list price. Certainly, one must look at competing homes for sale...right now that is of utmost importance. But unless your CMA includes adjustments for depreciation, functional obsolesence, landscaping and other upgrades in your comparisons, the seller will always say," but my house has.....and this one doesn't!
A second opinion helps...and seeing it all in black and white, twice, doesn't hurt either!
2 votes Thank Flag Link Wed Jun 18, 2008
I think an appraisal for marketing purposes is highly over rated. I can't tell you how many people have said, "But we have this appraisal from six months ago..." That's worthless in a generally declining market such as ours, but the "appraisal" tag elevates its perceived important in the consumers eye.

In fact, it can be worthless if it was done last week.

I suppose you could pay to have it updated, but what is the point? The buyer's lender *certainly* won't accept it.
2 votes Thank Flag Link Wed Jun 18, 2008
A current appraisal is very important for establishing valuations in today's market. Despite some opinions, an appraisal provides the current market value of a property as of the effective date of the appraisal or any other date the client wishes or needs depending on the purpose or intended use of the appraisal. A properly prepared appraisal report also provides for the client or any other reader of the report, the market conditions and trends (past and present) allowing for an intelligent decision based on the complete data and purpose. No one can predict the future and anyone that observes the market based on day-to-day activity cannot fully comprehend the market and/or provide professional complete data that benefits the client.
2 votes Thank Flag Link Wed Jun 18, 2008
A realtor can determine current market value with basically the same tools an appraisor does, and it is free. However, when a seller feels their home is worth far more than it actually is, sometimes they do need a second opinion, which could come from an appraisor.
1 vote Thank Flag Link Wed Jun 18, 2008
I would think a current appraisal reflects yesterday's valuation and not today's (and next week's). As such, in a depreciating market, a "current" appraisal will reflect yesterday's value which may or may not be higher than today's. An appraisal may give the wrong impression to the seller who wishes he can sell for yesterday's market and not today's.
1 vote Thank Flag Link Wed Jun 18, 2008
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