Every contract has a closing date. If the date comes and goes and the contract doesn't close, you no longer have a contract. You can extend the closing date with a written extension signed by the buyer and seller.... more
If you are eligible for one of the new Home Affordable Refinance Programs, you may not need a new appraisal. If you are interested in finding out more, please get in touch and I'll walk you through the steps for determining your eligibility.
Appraisals and market value do not always match up perfectly. Appraisers use "sold" properties for their comparables. If you are in an area where prices have been declining, and inventory rising, your market value might come in lower than past comps. Just one example. There could be any number of possible scenarios. Since I am not in your market, I cannot speculate to what is happening there.
An appraiser is typically providing an opinion of value for a lender. Does the property meet the lender's criteria? Does the property hold the value necessary to justify the loan?
The market will establish a value for your home based upon the number of active buyers and how much one of those buyers will pay for your property.
Pricing for the market needs to take into consideration the past solds, current pending sales, number of active competing properties, and also how many properties expired without going to contract. The Realtor will also evaluate trends in the marketplace. What is the absorption rate? What are the average DOM for various areas?
Market value results from the forces of supply and demand.
So, in other words, the appraised value may not be the best guideline in estabishing a pricing strategy to go to market. Rather, an evaluation of the marketplace will be the best indicator. Go to market with the price that the evaluation indicates a buyer might pay. Pay close attention to market feedback, and adjust accordingly, if need be.
Deborah Madey - Broker
Peninsula Realty Group, Inc.