Institute of Housing Technologies
Improving the Real Estate Information Network
Smart Sellers & Smart Agents
It's a new day in the real estate business. Selling your home requires planning. If you want to have a successful transaction, smart sellers start with a home inspection, and a prelisting appraisal. Today's buyers want it all; they want a home in pristine condition and they want it at a bargain price. Smart listing agents are taking away the two biggest hurdles of any transaction, before they start the process. Armed with a home inspection (and a list showing all items have been repaired), and a prelisting appraisal, sellers are selling their homes closer the the list price and in the event a low appraisal still happens, they have a point of contention or a benchmark to make their case to the lender. Appraising real estate is an art and different opinions happen. Especially in today's underwriting guidelines. Appraisers are so scared of underwriting guidelines, they are overcompensating to try and avoid the inevitable comebacks, with requests for changes by underwriting. It takes appraisers more time, for less money, and still everyone seems to be mad.
When it's time to get ready to sell your home, start by working with a real estate professional who understands the importance of pricing your home to sell. That does NOT mean to just blindly price your home below the market. It means to work smart. Know what the market is doing, know what will attract a buyer, and know that the buyer can qualify for the loan and the house will appraise for the purchase price. Why do all the work to negotiate with a buyer, take the roller-coaster of emotion working out a price, only to find that the house will fall short on the appraised value and the deal will be lost. You can waste three to six months (or more) and end up right where you started; with a for sale sign in the yard. That is NOT the way to sell your home. Selling a house is no easy task to begin with. Adding a potential road block along the way is just adding insult to injury. Make no mistake - it's a difficult task to sell a home. Don't make it more complicated than it needs to be. Work smart, from the start!
Smart sellers are having an appraisal done, BEFORE they make any pricing decision. It helps to establish the accurate amount of square footage (GLA in an appraisal), offers a benchmark to support the home's value to potential buyers, and helps to establish how the value was originally determined, just in case of a low appraisal. In today's real estate market, a prelisting appraisal, along with a prelisting home inspection, is a formula that gets results; talk to your agent. Work with a real estate professional that understands the rules have changed and knows how to get your home listed right, so you can make the finish/closing line.
Measure your house (first) and make more money!
Before you put out the for sale sign, be prepared. Start with the end in mind. You will make your journey a much more pleasant experience.
Before you put out the for sale sign, be prepared. Start with an appraisal, and a home inspection. You'll be glad you did. Don't be a statistic in next year's real estate report. Prepare to Move!
Prelisting Appraisals - The Smart Choice... Save time and money. Having a prelisting appraisal will make the entire process easier for everyone involved. Answer many value questions up front and don't get any surprises two weeks before closing, after everything you own is in a box. The time to get this knowledge is in the beginning of the listing process. Arm yourself, save time, grief, and your money.
If it's your house, don't take any chances. Prelisting appraisals and home inspections are your best bet. With a prelisting appraisal, you are well prepared to dispute the value, if you are faced with a low appraisal; saving a lot of grief and the sale for all those involved.