interested in home but upon looking at the recent appraisal on the home it is 70,000 but they are asking 125,000, that is 50,000 more than appraisal??

Asked by Teressa Herd, Mesquite, TX Thu Aug 8, 2013

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Brent Rice, Agent, Plano, TX
Fri Aug 9, 2013
Teressa, sellers will always tend to price their property at the highest price that they believe the market will pay. Certainly, if they are represented by a Realtor, it is much more likely that they are educated about local market trends and will price the property accordingly. If you do not have a Realtor to represent you, then you put yourself at a disadvantage. (To a large degree, by asking this question, you have evidenced that you are not represented by a Realtor.)

As my colleagues have suggested, the tax appraisal is not the best indicator of current market value, assuming that is the "recent appraisal" you are referring to. Also, the current tax value may not reflect the possibility that the property has been expanded and/or completely remodeled after being purchased by the current owner as a foreclosure....especially, if the property is owned by Ka-ching, Ka-ching. (When this property was only 940 sf it sold for $92,000. The garage has been coverted to now reflect more area.)

If the property is listed for $125,000 and does not sell, then is could be a result of it being over priced. Without a Realtor, you will likely not be able to effectively keep track of the "current" status of the property. Moreover, with a Realtor, you could prepare an offer based on an educated and supportable opinion of market value and have the opportunity to negotiate effectively, to the extent that you can afford it.

Oh by the way, being represented by a Realtor DOESN'T COST YOU ANYTHING. So, obviously, find one of the qualified Realtors here on Trulia and ask for assistance. After all, that is why we are here. :-)

Best of luck!!

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com

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0 votes
Theodis Barn…, , Mesquite, TX
Fri Aug 9, 2013
Hello Teresa::

What are the homes in that subdivision selling for on the market? If you finance the home an appraisal will be done and it must be priced at the appraised value or less. Tax appraisals are not used to price a home it's the real estate market.


Theodis Barnes
Global Realty Group
972-697-8081.
0 votes
, ,
Thu Aug 8, 2013
Is this a real estate agent listing the home or is it for sale by owner? Real estate agents usually do their market research and price accordingly (not always, mind you).

If the home is being sold by the owner with no professional help, it is more likely to be overpriced for the market, IMO.

If the deal gives you a bad feeling, trust your instincts.
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Aug 8, 2013
You have a recent bank appraisal from your lender that you are reviewing? An appraisal from someone who has gone inside the home?

If you are looking at the tax appraisal, this is a computer generated model full of flaws and not a great way to judge market value. They could be way too high or way to low. Not a good way to even ballpark the market value in my opinion.
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Aug 8, 2013
What appraisal from your lender, comp's from a Realtor or Tax appraisal?

If you are referring to tax appraisal it will always be lower than true value of the home.

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