How realistic is the agent’s appraisal?

Author: ME

Published at: 6/21/2016 3:29:22 PM


How Realistic Is The Agent’S Appraisal



Deciding a suitable sale price for your home can be the difference between a quick sale and months of watching your home languish on the market.


There’s an old real estate saying ‘every property sells at the right price’ so even if your place is showing the effects of a little too much love from the kids, the family pets or just the ravages of time, you should have no trouble selling as long as it’s priced appropriately.


The trouble is, we often think our home is worth more than anyone else does. That’s fine until it comes time to sell up. Buyers will take a far less passionate view of your property than you do. They probably won’t even notice the bathroom door you spent weeks sanding back and varnishing.


But they will notice the price.


That’s why it is so important to arrive at a realistic selling price. It all starts with obtaining a number of appraisals from at least three local real estate agents – and knowing who to believe.


Go for agents with runs on the board


First up, stick with agents who are actually making sales. ‘Sold’ stickers will be a fair guide of their strike rate. Give the property a quick spruce up before the agent arrives to show you’re serious about selling, not just a tyre kicker looking for a free valuation.


Look for the logic


When all the appraisals are in, take a look to see how they were worked out. A good agent will justify their appraisal with reference to recent sales of similar properties.


Be wary of an agent who drums up an appraisal without any concrete evidence.


Don’t be dazzled by big dollars


Next, average out all the suggested values to give yourself a guide. Don’t automatically accept the highest appraisal. An agent may be tempted to inflate the appraisal to win a listing, and it could just lead to a prolonged sale period, and ultimately, disappointment.


Crunch some numbers of your own


Take the time to look at comparable local homes being offered for sale in your area. Most importantly, look at what those homes have actually sold for compared to their advertised price.


Remember, buyers expect to negotiate on price. So allow some wiggle room in the listed price, and come up with a firm figure that’s your absolute bottom limit. Listen to your agent’s feedback if you’re not getting much interest several weeks after listing – market conditions can change quickly and holding out for an unrealistic price can just drag out the sale process.