Determining the “right” list price in the current market has been a challenge for REALTORS, to say the least. The dichotomy between national media reports local statistics and trends, the ups and downs in activity levels as the market has begun to shift toward balance, attempting to get top dollar for our sellers in the least amount of time despite buyers that are still skittish of the economy and wondering if we’ve truly seen the worst of things…all of those factors make the pricing equation far more complex than it has ever been before.
I believe that the best indicator of market value is actually active inventory. Buyers buy
based on what else they can buy on that day; they don’t buy based on what sold last month, what the seller needs to “net” in order to accomplish their next move, or what the seller paid for improvements. Accordingly, the most important analysis in determining the “right” list price is a careful study of active listings that a prospective buyer will be comparing and selecting from. An agent who can effectively “position” a listing to be the best value in its category is worth his or her weight in gold.
So, if market value is determined by active inventory, then why secure an appraisal up front? Lots of reasons, actually. First, 95% of all buyers get a mortgage; accordingly, regardless of what they may be willing to pay, the bank will want an appraisal in order to “justify” making the loan. Because our local market has been so volatile, low appraisals are a genuine concern. At Liz Moore & Associates, our philosophy is to eliminate as many of the 11th hour surprises that can derail a sale as possible, and so we provide, at our expense, a pre-listing appraisal (and home inspection) to all of our Sellers.
Another benefit of a pre-listing appraisal is the peace of mind it affords the buyer. Buyers’ confidence in the market is at an all time low, and the result is low offers. That can be extremely frustrating to a Seller. By having an independent party establish value in advance, the buyer has something to hang their hat on when making a decision, other than the negative media and press.
Having a pre-listing appraisal also helps us confirm accurate square footage, eliminating another “surprise” when buyer and seller discover at the last minute that the assessor’s office was wrong, and the house is considerably smaller than everyone thought.
Whether you’re a buyer or a seller, a knowledgeable REALTOR can mean the difference in thousands of dollars in your pocket. Looking for a recommendation? E-mail me at liz@lizmoore.com, and I would be happy to match you with a GREAT agent, whose expertise will guide you to a successful home sale or purchase!
Or, click below for more information on our No Surprises Program and see how a pre-listing appraisal can help you.
