Home Selling in Redlands>Question Details

Janene, Home Seller in Redlands, CA

Our home was appraised 2 months ago for 1.7 million. Now that we are trying to sell, the only sold houses in

Asked by Janene, Redlands, CA Wed Feb 25, 2009

the area are below our appraisal, with one sale under duress-seller sold for $200k under asking price 3 months after he listed. How will this hurt us and how far back will the appraiser go (houses at the end of last year 2008) were still being sold for fair prices.

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Steve Smith’s answer
What If the market is going down 1% Per Month, or 2% or 3%?. Going back in Time to get a sale when the market is going down, requires a Time Adjustment by the appraiser to bring the old sales prices down to where the market is today. Discounting a Listing is appriopriate, the only question is how much.

The opposite is true when the market is going up. Is your market going up or down?

Look at the number of Listings over $1m and the number of Sales in the last month, two, three, four, five and six month period. What is the average number of Sales, and what is the current Inventory? It might be that there is an Over Supply.

The upper end market segment may have held better than the lower levels. The lower levels started declining in March, 2006 in Redlands. In Feb. I gave a presentation at the Library to a group that was interested in the future of real estate price trends, and predicted a 25%-50% drop in prices. The reaction by the press was negative, because there had been no measurable declines, and none of the nationally quoted real estate writers has mentioned it. The rest is history.

Post Madoff, high end buyers became fewer. Prices at the high end began to soften in 2009. Now, there is an over supply as more hang on the market and do not sell. Selling at any price today, may be much better than not selling at all in the next year..
0 votes Thank Flag Link Thu Feb 24, 2011
This is a terrible time for home sellers..... we are in a buyers market so to speak, just because we have more properties available in most if not all markets and so many fewer ready and willing buyers, everybody is careful and many buyers need to sell existing properties before they can buy a new one. So it is a very tough market.

And with the luxury market having even less potential buyers it will be even more difficult.

Appraisers will try to stay as close to the most recent sales as possible and often they will have to even look at homes on the market if not enough properties of that kind are available. The banks are very careful and many times they send the appraiser out again to bring more comparable information.... So you may have to
consider that you will not be able to sell your home at the old appraised value ...... It will be worth what a ready and willing buyer is ready and willing to pay for your home, and your choice is to negotiate as best as you can and then either accept of reject the offer. Which really depends on your individual situation, why you want or need to sell your home and what your next plans are....

But I do feel for you, it is a terrible time to sell property, but you have not had your home on the market for a long time right? So that is probably another point to think about it may just take longer for you to get it under contract than before.

Do you work with a Realtor? What does he or she say about it?

Hope this helps a little.... If you would like me to refer a local experienced real estate agent to you who knows Redlands CA well, I would love to do so and pass on the information of a trusted Realtor Colleague of mine. Just let me know! edithsellshomes@gmail.com
Edith YourRealtor4Life! Working always in the very BEST interest of her clients!
0 votes Thank Flag Link Thu Feb 26, 2009
Unfortunately the banks are over cautious when it comes to appraisals and comparative comps these days. 3 months used to be the norm but some are asking for comps more recent than that. If you don't have compensating factors (pool, more square footage) you most likely will have to lower your asking price.
0 votes Thank Flag Link Thu Feb 26, 2009
Your home will sell for whatever a buyer will pay for it on the open market. Unfortunately with so many foreclosures and sellers having to do short sales, your home will get an offer for what the comparable sales are for your home in your area. There are many low ball offers coming out these days, but in the case of oversupply of certain homes, there are multiple offers and homes sell for more than list price. In your case, you are in a luxury market, and there are fewer buyers for your market, and so you may end up having to drop your price to what was recently sold. Appraisers try to use the most recent comparables if there are any, and usually won't go beyond 3 months, unless there aren't any comparables, and they will then use active listings and older comparables.
Good luck!
0 votes Thank Flag Link Thu Feb 26, 2009
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