Question Details

Roger, Home Seller in Toano, VA

What would generate more traffic to a residence?

Asked by Roger, Toano, VA Thu May 15, 2008

"$20,000 below assessment" or "$11,000 below appraisal"? (Same house - two different figures from county and appraiser) Rather from PURELY a marketing standpoint, would'nt advertising the $20K be better to get regular people with or without agents to a property even though an assessment means little outside of county taxes.
I think I would show up to a property quicker because a regular person confuses the two.

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4
Roger,
Marketing is one of the valuable tools that we have as Realtors and the MLS is the biggest tool in the box. 20K below assessment or 11K below appraisal of course the larger number looks and sounds great, but the only number that matters is the asking price. Are you priced ahead of the market?
Pricing your home correctly, only you control. Pricing your home at market rate or below is the way to sell your home. You have all the access to the information that you need to set the price. Condition is another thing that you control, so make sure that your home looks great from the buyers first look (curb appeal) to making sure that your guest bath is sparkling.

I wish you the best in getting your home sold!

Charles
0 votes Thank Flag Link Thu May 15, 2008
Keith,
I dont need a realtor to tell me there are a total of 19 properties in my neighborhood for sale. I also can find out everything I need to know from the county GIS system about these 19 properties or absolutely any others I wish. What they paid for it and what it is worth. I can see one owner that is upside down from what it is worth and what they paid for it. This system tells me how many SF their house is and how much land they have. I can use many internet tools and see what the highest price they have listed for and what it is now. I can also tell you that all of these properties 50% are trying to sell 20K above their assessments, the strategy is not working because they have been up longer than mine. The other 50% are about 10K over assessment. What were their agents thinking on that pricing? I see just from shopping that of all the houses for sale only one is giving any type of concession. The only place I have seen them advertised is the MLS and the paper. Oh, and I had 10 inquiries and 2 showings in the first two weeks.
I am not hiding the fact I am not using an agent (i.e Home Seller")

Keith, your telling me as a realtor you cant see the value of marketing in selling!
You give me 10 people off the street and I will show at least 5 of them that dont know the difference between assessment and appraisal - that right there makes the assessment idea valid.
0 votes Thank Flag Link Thu May 15, 2008
Roger
Assuming your home is listed with a Realtor, your Realtor should be able to share with you the number of properties with which you are competing and what they are doing to compete. As a matter of fact, your tactic sounds more like someone selling without professional representation than something a Realtor will suggest.

let me explain:
Buyers shop in price ranges. Usually a home needs to be priced correctly within 5% of the selling price. So on a $200,000 home, you need to list it no more than $5K above, or $5K below market. Most markets are declining, so you'd be better off pricing it $5K below market to attract showings.

In most markets you need 10-12 showings to get an offer. So if the market is soft, you might need 20-24 showings to get an offer.
No showings in the first two weeks means the price is too high, no offer, same .

The buyer that first sees the home they purchase sees it with a Realtor 90% of the time, so you need convince three people that your home is a good deal: The Buyer's agent, the buyer, and the lender.
Why the lender? Because they will not fund a loan on a property that sold for more market value.

The assessment idea makes no sense, the value will be re-set when the property changes hands.
0 votes Thank Flag Link Thu May 15, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Try both, and see which attracts more interest.

You're absolutely correct: Many people confuse assessment and appraisal. So, the effectiveness of your campaign will really depend on the sophistication of the buyer (that is, whether they know the difference).

And even sophisticated buyers (and agents) know that appraisals aren't necessarily the gold standard. Two years ago, at the height of the bubble, an awful lot of properties were over-appraised. In some cases, it was for the initial purchase. In other cases, it was for a refinancing or HELOC. But the houses never were really worth the inflated figure.

And you're also correct that big numbers stand out more than smaller numbers. $20,000 off of anything sounds better than $11,000 off of something.

So my gut reaction--and my analysis--says that "$20,000 below assessment" is going to be the more effective traffic generator. But try both, and see which does better.

Good question!

Hope that helps.
0 votes Thank Flag Link Thu May 15, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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