BOOST your appraisal!!

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.