Business
What if the Appraiser Does NOT Think Your Home is Worth the Sales PriceSegment 3What if the Appraiser Does NOT Think the Home is Worth the Sales PriceWe are back with Barb Schlinker, Barb…Barb, I’m told the market is red hot and sometimes the appraiser does not think the home is worth what the buyer agreed to pay, tell us about that.1. Yes, its exciting and very scary for home sellers at the same time.a) For the 4th month in a row prices are spikingb) Some sellers are reaching for the moon on prices and not getting itc) bidding wars ARE COMMON2. We have had a few cases where the appraisers have come back and said the home is not worth what the buyer agreed to pay. This can be very frustrating for a home seller.a) Options: Lower price to appraisal1. Say no and get buyer to make up diff in cash2. Negotiate in between1. HaystackThe Elephant in the Room – Bidding OVER its ValueMany agents are making offers like that …just to get a contract then.If it doesn’t appraise…weeks later, some agents think the seller must lower their priceNot TrueWE STAY AHEAD OF THE VALUE / APPRAISAL ISSUEAt our office – we look a value many times:First meeting with sellerJust before we go on MLSWhile Presenting OFFERSAt APPRAISAL VISITWHAT CAN BE DONE IF THE APPRAISAL COMES IN LOW?VA appraisal is the only one that can be challengedFHA and Conventional – you get what you getWe Plan ahead with great comps and communicating with appraiserMANY OFFERS NOW ARE ANTICIPATING THE ISSUEAPPRAISAL GUARANTEES IN OFFERVery attractive to sellersIt takes an agent who understands appraisals, market trends and how to properly select similar salesIf you would like to get an opinion of value and find out how we are able to command on average $28,400 OVER asking price, + help get you ready for sale, call us at 719 301 3900You are listening to the Real Estate Voice with myself Barb Schlinker of Your Home Sold Guaranteed Realty, you can reach me at 719 301 3900 We are talking Barb about appraisals. How do home sellers prevent or plan for appraisal challenges?Price Realistically NOT Optimistically1. Look at similar recent and active sales.2. Condition is big:Its an opinionTry to make the house look nice for the appraiser visit3. We meet the appraiser, provide similar sales and tell them about improvementWHY SELLER TOOK LESS than what is offeredBoth offers willing to go to 500K Seller Picked best buyer and countered at a lower price…WHY1. Concern over appraisal coming on low2. Wanted buyer to Know it was an AS IS SALECONDITION ISSUES PLAY A ROLEa) SHOWINGS HAVE STOPPED1. THIS IS An OPINION OF VALUEHAS SOME SUBJECTIVENESSb) NEED TO KEEP IT TIDY DURING APPRAISER VISITOCCASIONAL REQUEST FOR REPAIRS FROM APPRAISERSa) Many get appraiser and inspector mixed up1. The VA does NOT inspect your homeb) AN APPRAISER CERTIFIED TO DO VA APPRAISALS 1. IF ANY APPRAISER REQUEST REPAIRS ITS SO THE HOME MEETS THE LOAN GUIDELINES Why VA Buyers and Their Appraisers are Great!1. Only Appraisal you can challenge2. If a down payment it’s a good thing3. Need an agent who knows how to pick similar sales = successTypical Appraiser Repair Requests:b) FHA & VA Loans:1. Peeling paint2. Missing outlet covers3. Safety issues4. Window well covers5. Broken windowsc) Conventional Loans:1. Any Safety IssuesTypical Appraiser Repair Requests:a) FHA & VA Loans:1. Peeling paint2. Missing outlet covers3. Safety issues4. Window well covers5. Broken windowsb) Conventional Loans:1. Any Safety IssuesTypical Appraiser Repair Requests:c) FHA & VA Loans:1. Peeling paint2. Missing outlet covers3. Safety issues4. Wi