BOOST your
appraisal!!
In
this depressed market many sellers have anger due to lowered values that just
don’t seem to be on the rise. If
you are selling in today’s market and wish to obtain the highest price
possible, it is mandatory that you fully understand the value of your home as
well as what features you offer above and beyond your current competition and
more importantly what sets you apart from your recent sold comparables. Sold comparable information is
driving the market, and while it is important that we maintain fair market
value it is just as crucial that we understand and educate buyers and
appraisers on what exactly WE are offering.
Knowing and
understanding your comps
Any
agent worth his or her weight is going to refer to sold comparables the instant
a buyer has interest. This is par
for the course in terms of protecting your buyers as an agent. However, many agents don’t fully
understand each and every comp.
How could they? We
certainly can’t expect them to know the ins and outs of each recent sale in our
area. We can however educate
them. If a home similar to yours
recently sold for 20% less then your anticipated sales price, it is your
listing agents job to explain this to buyers as well as appraisers. The low sale could have been a gut job
flip opportunity, or could have had mold damage, or was possibly an uncared for
short sale. Without understanding
these factors yourself and making them known to the buyer/appraiser you are
faltering out of the gate.
Non-MLS Sales
The
MLS is without a doubt the driving force in the Residential Real Estate
industry. However, just as
not all cars are sold at dealerships, many homes are sold without the help of the MLS. While this may not be a huge “oh yea” moment for you (I’ve
heard of FSBO’s before) many agents forget to do their research outside of the
MLS. If a great comp does
exist that is not being factored into your appraisal or comparative market
analysis you could easily be giving money away. Be sure either your agent or yourself understand what has
happened outside the MLS. There
may be nothing there, but panning for gold can be a big payoff for a bit of
time.
Lot Premiums
Some
of you may have shopped for new homes in the past. Many will remember the big Plexiglas overhead map showing
available lots as well as sold properties. It is normal and expected to pay an additional fee for a
premium lot. In some communities a
water lot can sell for as high as $100,000. In “normal” sized communities that number may be
$45,000. The point is that premium
lots always have a premium cost attached to them. While this theme may continue in resale values, it is never
equivalent to builder premiums. If
you have a premium lot, either on water, or oversized, or backing zero
neighbors – whatever it is, promote it!
Remember, it’s not only the house you’re selling – it’s also the
property.
Selling
in this market can be demanding, but the best way to strategize is to be
prepared. Knowing and
understanding TRUE MARKET VALUE for your particular home will better prepare
you for success.
