Market Conditions in 07840>Question Details

Tim Harris, Both Buyer and Seller in Hackettstown, NJ

Is it the norm, curently; for houses to sell @ apapraisal value?

Asked by Tim Harris, Hackettstown, NJ Mon Jun 16, 2008

Help the community by answering this question:

Answers

8
Could it be your appraiser had a copy of the contract of sale before doing his/her "independant" appraisal? Unfortunately it is fairly common and makes buyers suspicious. Hopefully you saw enough other homes to have an idea of pricing of both currently available and recently sold to have comfort. If in doubt have your agent pull the comps they used to assist you in making your offer. Dont get confused with assessed and appraised values as these can be very different.
Kenneth "Ken" Verbeyst CRS GRI ABR SRES
Broker Associate
Prudential NJ Properties
LIcensed Pa & NJ
1 vote Thank Flag Link Mon Jun 16, 2008
We just had a very bad experience with a home we were buying appraising for $17,500 under selling price. We ended up paying for an attorney,the appraisal and the inspection which ran us $1800. After much introspection we have determined that we made the mistake of not asking our Realtor for comps as she assured us (we knew the home was overpriced for the area) that the appraisal would protect us from paying too much. Of course the seller bailed at the last minute leaving us with all the costs while she had none. I learned a lesson, don't expect some one else to do your due diligence for you. But on the other hand, being a previous licensed Realtor with the same (very prominent Brokerage as our Realtor) that she did have the duty to protect us by doing certain things that would benefit us, like protecting us from making an offer that was too high. At the very end, when the appraisal came my husband and I were in the cinema when she texted me that " you should come up with the extra $17,500 to honor the contract". She also texted us that "after all the seller needs that money to buy her new house "!
0 votes Thank Flag Link Sun Feb 2, 2014
No luck In finding the homes of my dreams in NJ. I work in NYC and I'm looking to purchase a single family home in NJ. 3-4 bedrooms, 2 bathrooms, a basement, backyard and garage.
0 votes Thank Flag Link Thu Aug 23, 2012
what price point are you looking at and what commute distance would you be good with ? I ask because I worked in ny and lived in nj but am unemployed now and would like to sell my house. 4 beds , 2 baths ( one newly Reno ) , 2car garage , new driveway , gated golf community , 0.7 acre lot so plenty of backyard and front yard , 1600 sq ft basement unfinished but full height , giant kitchen , etc. Let me know Nobel.Pillai@yahoo.com
Flag Sun Nov 11, 2012
It depends... currently as home prices are falling sellers are about six month behind of real market price and buyers three month ahead. And current appraised values are reasonably close to selling price. To sum up I would say 75% yes to your question.
0 votes Thank Flag Link Thu Jun 26, 2008
Well, yes and no. All sellers want their homes to meet the apprasial or better it. If the home does not meet the apprasial value, the bank may give the loan up to a certain amount... in that case one of two things can happen the buyer may have to put more money down to make up the difference or the seller may have to reduce the price - either way - to make the deal happen. If a house does not appraise at teh sale value, the buyer may somethimes think they are overpaying for the house and that of course, is where the questions come into play.

To answer the question.. Is it the norm to sell at appraisal value? Yes and no : )
0 votes Thank Flag Link Mon Jun 16, 2008
I think people who have answered you so far are confusing "appraisal value": the opinion of a licensed appraiser of a property's current value, based on comparable sales in the last 90 days, with "assessed value" the valuation used by local government to calculate your property taxes. Properties are reassessed far less frequently, and, I believe there has to be a reassessment (of the whole municipality) when there is a discrepancy between assessed values and sales values of over 15%?? There was an interesting article in yesterday's NY Times. I'm not sure if it was in the NJ section or the Real Estate Section.

Do you mean appraisal or assessment?

Joan Prout, MBA
Broker Associate
RE/MAX Villa REALTORS
Jersey City, NJ
mailto:Joan@JoanProut.com
800-671-0596x1
0 votes Thank Flag Link Mon Jun 16, 2008
Tim,

In Hackettstown you have not been reassessed so the selling price is well above the assessment. In Independence however, it is at or below assessed value. Hope this helps.
0 votes Thank Flag Link Mon Jun 16, 2008
Hi Tim, It is tough to make a blanket statement on this point. However, it is safe to say that increasingly given the market decline, that more homes are selling around - and even below - assessed values. Assessment rose with the market and now that the market has shifted, the balance has changed.

Having said that, I strongly recommend that you assess value and/or listing or purchase price based on a thorough market analysis using market comparables. A good agent can help you with this.

Good luck to you!
Jeannie Feenick
Weichert Realtors
http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Jun 16, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer