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Appraisals Bank vrs outside

Posted on: 16th Aug, 2010 11:07 am
We put our home on the market. We wanted to make sure we had a good asking price so we got an appraisal done. We priced our home accordingly. Several Real Estate agents state that we are asking too much. We informed them that it is under the appraisal amount because we would like a sell quickly. The Real Estate broker stated that ususally a bank appraisal will be lower. Is this common?
In today's market, there's no such thing as a "bank appraisal." All appraisals are done by outside agencies - appraisers who are professionals. The realtor isn't far off, because most sellers think their homes are worth more than they'll actually sell for, and lenders, being conservative, may well be using appraisal companies that are known for conservatism. Nobody wants to appraise a home as they were being done a few years ago and then have the market undercut the underlying loan, as we've seen too often.

There is definitely a strain of conservatism in the marketplace, and the realtors react to it, of course. They don't want to try to sell a home that won't reach the pinnacle that a seller anticipates only to have the appraised value cut the deal to shreds.

Be conservative in your approach. You'll sell faster, and you'll be more likely to have your buyer obtain their mortgage.
Posted on: 16th Aug, 2010 04:34 pm
I agree, an appraisal is an appraisal regardless of the client.

You mentioned that you priced the home below appraisal. When was the appraisal done? If it was a couple of years ago, it is quite possible the market has declined since then. If the appraisal is recent and real estate agents are saying you are still too high, you might want to consider a second opinion from another appraiser. Agents get paid based on a percentage of the sale price so the more it sells, the more they make. For them to say it is overpriced, might be worth looking into.
Posted on: 16th Aug, 2010 07:34 pm
George and Ben thank you for your responses.
The appraisal was done in July 2010 and there are 2 other homes on our street priced quite a bit higher than ours. So we believe that we are in the right ball park. Problem is that we have had very few showings in 7 weeks.
Posted on: 17th Aug, 2010 05:41 am
BBlue, it's a tough market no matter where you might be located. People are making less money than they were before, they're not trying to "move on up" as they once did, they are afraid to spend more money on a different home only to find the price decline in the future, thereby negating their investment. Pick a problem, there are plenty there for the choosing.
Posted on: 17th Aug, 2010 03:00 pm
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