I have a question about assessing sale value of my home

Asked by Enchantedwalls, Lake Stevens, WA Thu Jun 13, 2013

When assessing a homes value by averaging local sales...do you average in the super low prices that bank owned properties go for these days? I'm assuming that can really bring the value down in some neighborhoods?

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Jennifer Mur…, Agent, Everett, WA
Fri Jun 14, 2013
Always a good idea to interview a potential agent. Your home is your most valuable asset and you must have a good fit with your selling agent to make the transaction run smoothly. We are here to assist and if you don't feel one of them is there for you and not just the listing then just say NEXT. Also, be weary of an agent telling you they can get a higher price than the others for your home just to secure the listing. Best of luck and if you don't have your five please check out my reviews I would be happy to talk to you and No Obligation. My last listing in Lake Stevens sold in 3 days with multiple offers and my clients were very happy.

Take Care and good luck.
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Cheryl Buck, Agent, Lake Stevens, WA
Fri Jun 14, 2013
Brian is right! You should interview your potential agents. This is a very important investment & you deserve the very best advice. We would be happy to help.
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Enchantedwal…, Home Buyer, Lake Stevens, WA
Thu Jun 13, 2013
Wow-thank you everyone! Great info! Brian....I like your advice on considering 5 agents. I thought I might feel rude to have people come out for free and then possibly not use them. Is it acceptable if I set an apt. for 5 agents to do a walk through at the same time, or is that a bad idea?
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I missed the walk through comment, which does suggest you're a seller.

Having them all there at the same time would be a bad idea because personality will also impact your decision, and you won't be able to assess that if they are all there together. Remember, you are going to have to work with whoever you pick, so it has to be someone you can get along with.
Flag Fri Jun 14, 2013
The biggest problem with interviewing 5 agents is having a good source for 5 agents. Picking them off or signs or the Internet is not good.

If you are a actually buyer (as opposed to a seller as assumed here), I would suggest asking your lender for referrals. Your lender probably knows several agents who are competent, and competency should be the main concern.
Flag Fri Jun 14, 2013
It would be a bad idea. The real estate community is a small one and some agents have certain tactics and tendencies. If the agents meet each other your answers may be not as objective. Remember we are all competing with one another for business. Consider having them over at separate times. You are shopping for someone to represent you in a major financial decision. You have every right to get multiple opinions. (Now for the sales pitch....I would like to be one of the agents that you interview when the time comes.). It is most important that you choose the one agent that you feel you can trust. Never underestimate your "gut feelings".
Flag Thu Jun 13, 2013
Brian Acey, Agent, Everett, WA
Thu Jun 13, 2013
It sounds as though you are trying to determine value of your home in anticipation of selling. If that is the case, I recommend that you have at least 3 (really recommend 5) real estate agents give you a market analysis of your home. Agents do this for free for potential customers every day. If you are able to have 5 agents come through for a market analysis, then throw out the highest and lowest estimated sales price (one is looking to buy your listing with a very high list price, the other is looking for the quickest sale), then average the remaining three. When (and if) you decide you want to list your home, go with the agent that you felt you could trust (regardless of their recommended price) and list at the price you determine.

In determining the value of the home, an agent or an appraiser, takes into consideration the physical condition of the home, the number of bedrooms, baths and other amenities (such as garage, lot size, view, etc.). They then compare your home with other similar homes in the same or similar neighborhoods. Just averaging the sales price of homes in the neighborhood will throw your numbers way off. A single level home compared with a mid-entry (as an example) is comparing apples to oranges just as comparing a 1200 square foot home with a 2500 square foot home would be inappropriate.
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Dan Tabit, Agent, Issaquah, WA
Thu Jun 13, 2013
Your list price should be based on the most comparable sales in the area. If you are not a distressed property, try not to used distressed homes (short sales and bank owned) as comparables. If they are all that's available, consider their condition compared to yours as well as the level of market activity in the area. I tell my buyers the only reason to consider waiting out a short sale is if you can get a great deal on it. If you are not a short sale, you should be priced higher than the recently closed short sales.
One other note, consider your active competition when pricing. You want to attract the potential buyers away from them if possible.
Finally, I hope you are getting the advice of a great local agent/broker. Pricing is one of the 4 keys to selling quickly and for top dollar. You can do the others fine, but if you price wrong, you'll miss out. I did a blog post on these 4 keys you can read at the attached link. It takes a great pro to hit all 4 well and will result in a higher net in your pocket if done right.
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Jirius Isaac, Agent, Kenmore, WA
Thu Jun 13, 2013
The main question I have here for you is who is making the assessment. That is really what makes the big difference here. Is it you, an appraiser, a tax assessor, a real estate broker. And then, why are they doing the assessment? There is no easy answer to this question with getting specific.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
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Lynn Newcomb, Agent, Lake Stevens, WA
Thu Jun 13, 2013
Good Morning:

I am a Real Estate Broker that lives in Lake Stevens and specializes in Snohomish County real estate. The bank orders an appraisal and the appraiser attempts to find enough apple to apple comparables to determine the fair market value of a home. The good news is that the bank owned homes are fewer and fewer and their values have been going up along with homes that do not have third party liens. I don't know of any Lake Stevens neighborhoods that have a huge number of distressed properties anymore, which is great news. The bigger problem appraisers are having is keeping up with the rising values when they are determining the risk of a particular loan. If there are not many comparables due to the low inventory and a home gets multiple bids, which is common right now, then it is possible that the home will sell for quite a bit over fair market value. This is the trend I am seeing in our region at the present time.
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Kary Krismer, Agent, Renton, WA
Thu Jun 13, 2013
It would depend on how prevalent such sales are in your particular neighborhood. The worst example I can think of was an area up in Marysville in about 2008 or 2009 where just about every house in the development was a short sale. There you would be hard pressed to price much above the price of the short sale listings.

In contrast, some areas have few short sale listings, and there you can practically ignore them. That said, a couple of years ago I did see an appraiser use two or three short sales as comps in Newcastle, which he probably had to search out because that area had very few distressed properties. Even so, the house appraised for the contract price.

Finally I would note that some banks are not pricing their REOs low at all now, at least in some parts of King County. Sometimes they are even priced higher than what a normal listing would be, and I heard one REO agent say sometimes they are getting that price. So if a REO listing is priced low, it very well may be due to the condition of the property and not just the fact that it's an REO.
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Annette Law…, Agent, Palm Harbor, FL
Thu Jun 13, 2013
It is important to know which bank will be ordering the appraisal. Those who complete dozens of home sales a year can list what different lenders will impose on the appraiser when they begin the process.
It is criticly important that a homeowner be proactive and does not become a victim in this process. There are preventive measures and/or resources to addrss the situation.
If you 'think' you're going to get clobbered and the buyer is using a Too Big To Care Bank, you will...)get clobbered).
But you don't have to.
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Suzanne MacD…, Agent, Morristown, NJ
Thu Jun 13, 2013
You have to at least take that into consideration because an appraiser will when it comes time to appraise the property so the buyer can get a loan. But, make sure you take into consideration the condition of any bank owned or short sale homes. Often they have suffered from lack of routine maintenance or, in the case of bank owned properties, downright neglect.
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