Should I still list my home for the price we paid or a little above even if the appraisal was below the price we bought it for?

Asked by Christi Mayo, Lexington County, SC Mon Nov 5, 2012

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12
Pam Bass, Agent, Charleston, SC
Mon Nov 5, 2012
BEST ANSWER
Unfortunately home values have dropped for everyone and a lot of sellers are in your same dilema and are having to take less for their homes. I would suggest listing it close to the appraised value - not more than $5,000 - $10,000 above the appraised price depending on the price point you are at - could do more if your house is worth more than $350,000. You want to have some room for negotiation. If a buyer is financing the purchase, the lender will only loan them the amount the house appraises for - no more.
0 votes
Glenda Cador…, Agent, Columbia, SC
Mon Nov 5, 2012
Hi Christi,

You don't say when the appraisal was completed or when you purchased your home; but, as others have said, list your home at a competitive price for the current market. A market analysis by a Realtor that is familiar with your segment of the Lexington market, should be able to give you this competitive price range in which to list your home.

The new construction in the Lexington area has put downward pressure on the resale homes in the area and a lot of homeowners are having to price their homes for less than purchase price.

Glenda Cadorette
Keller Williams Realty
Lexington, SC 29072
803-319-4532
2 votes
Christopher…, Agent, Tarrytown, NY
Mon Nov 5, 2012
Hi, It really depends on how big a difference there is. You should always price your home according to the current market conditions in your area. Look at similar homes that sold within the past 6 months, that's typically what a bank appraiser will do. Many people are in your situation and I find it only wastes time and money if you over price...

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
2 votes
Jim Olive, Agent, Key West, FL
Mon Nov 5, 2012
Christi...
You need to be very carefu with your initial listing price. If you price it too high you can start a "death spiral" that makes your home harder to sell and results in a longer period on the market. In a death spiral, folks won't consider your home becuase the price is obviously too high. Because they aren't looking, you're not getting any offers. As your house sits, it becomes obvious you need to lower your price. Lowering your price attracts some, but others think "they're lowering their price, must be something wrong with the house" and they run the other way. As this goes on, the number of "days on market" goes up and people start to wonder why it's on the market so long, is there something wrong with the house? And the price keeps coming down, days on market keeps going up. At some point the price will be low enough to attract offers, but serious damage may have been done. You can avoid this by pricing the house appropriately in the first place. Work with a good agent, get the price right and sell faster. Best of luck...
2 votes
Rusty Johnson, Agent, Columbia, SC
Wed Nov 7, 2012
Christi,

Thanks for your inquiry. Allow me to give you the "straight scoop".

Unfortunately, what you paid for your house has no bearing on it's value in the real estate market today. Also, you don't mention in your question what KIND of appraisal was performed? The type of appraisal performed will sometimes indicate a WIDE range of property value.

Additionally, you don't mention anything in your question about your motivations to sell? Sometimes, seller motivation will be a factor in listing your home for sale. And that'll also be a MAJOR part of the marketing of your home to get it sold.

In order to sell your home, you need to know what buyers have expressed a willingness to pay for homes similar to yours in your area. We call that a Comparative (or Competitive) Market Analysis (CMA). You'll also need to know what your competition is when you enter the market and that's also an important part of a properly prepared CMA.

If you're interested in a FREE CMA as well as a NO-PRESSURE conversation about the marketing required to get your home sold, feel free to give me a call. I'll be glad to help you.

Rusty Johnson, Sales Associate
Keller Williams Realty
Cell phone: 803-622-2285
On the web: http://www.rustyjohnson.com
0 votes
Diana Wood, Agent, Lexington, SC
Mon Nov 5, 2012
Since I don't know your total situation, I can't give you a definite response, but depending where you live and the prices in that area now, it is wise to start above the current "Sold" prices as it is a buyer's market and my experience is that the offer will be below the List Price. Hopefully, the negotiations will be favorable for you.

Also, I don't suggest an appraisal before a home is listed as many times an appraisal is done just for "inhouse" bank use or just at a Seller's request and it may come back differently if you let the Real Estate company do a Market Analysis first. A good realtor knows the market upside down in the areas they serve.

Call me at Wood Realty - 359-2964 - if you would like to discuss further.

Best regards,

Diana Wood, BIC
Wood Realty,LLC
600 Columbia Ave.,
Lexington, SC 29072

http://www.woodrealtysc.com
dianawood@woodrealtysc.com

803-359-2964 office
803-518-1036 cell
0 votes
Diana Wood, Agent, Lexington, SC
Mon Nov 5, 2012
Since I don't know your total situation, I can't give you a definite response, but depending where you live and the prices in that area now, it is wise to start above the current "Sold" prices as it is a buyer's market and my experience is that the offer will be below the List Price. Hopefully, the negotiations will be favorable for you.

Also, I don't suggest an appraisal before a home is listed as many times an appraisal is done just for "inhouse" bank use or just at a Seller's request and it may come back differently if you let the Real Estate company do a Market Analysis first. A good realtor knows the market upside down in the areas they serve.

Call me at Wood Realty - 359-2964 - if you would like to discuss further.

Best regards,

Diana Wood, BIC
Wood Realty,LLC
600 Columbia Ave.,
Lexington, SC 29072

http://www.woodrealtysc.com
dianawood@woodrealtysc.com

803-359-2964 office
803-518-1036 cell
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Mon Nov 5, 2012
Your home should be listed at current market value - what you paid for it has nothing to do with what it is worth today.
0 votes
Elaine Katze…, Agent, Lexington, SC
Mon Nov 5, 2012
Hi Christi,

The purchase price of your home is not a basis for your listing price. You need a comparative market analysis to determine your listing price using similar homes in your neighborhood and surrounding area. I hope this has been helpful.
0 votes
Eric Moore, Agent, Columbia, SC
Mon Nov 5, 2012
List your home as close to appraisal value if possible. Listing above appraisal will only cause your home to sit on the market. Price is key to selling a home in this market. Price to sell your house from the start and move on with your life. Call or email me for more information on the Columbia, SC and surrounding area. Visit me on the a web at http://www.eric.searchingcolumbia.com

Eric Moore
Realtor
Exit Real Estate Solutions
101 Rice Bent Way Suite 9
Columbia, SC 29229
803-316-7187
0 votes
Vincent Paige…, Agent, Orlando, FL
Mon Nov 5, 2012
Price your home appropriately and sell quickly, or you will chase the market and potentiayll lose big on the back side....
0 votes
Marge Bennett, Agent, Fort Myers, FL
Mon Nov 5, 2012
are you referring to the appraisal done at the time you purchased? If so, it is irrelevant., Base your listing price on a good current market analysis or current appraisal. In Florida our values are going up, not down as Pam indicates for the Charleston area.
0 votes
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