Appraisals for Real Estate Professionals

Appraisers can be the buffer between agents and their clients…

It’s well know to real estate agents that a homeowner selling his or her home has the option to list their home at any price he or she sees fit. Yet, many people feel their home is worth a lot more than it really is.

Sometimes real estate agent’s idea of what a property is worth and the homeowners don’t coincide. In some cases, getting an appraisal before taking the listing may help with certain clients when pricing is an issue. Some clients may believe you priced it too low and they think they will lose thousands of dollars.

Ever heard- “It sold so fast, we think we could have sold our house for more”?
Clients can get very emotional about price.

Some clients may think you listed it too high and that’s why it didn’t sell, or it hasn’t yet. Having the price reduction conversation with a client is never fun.

An appraisal from a certified property appraiser prior to listing a client’s home will sometimes get you out of the hot seat with your client.

Price your clients home based on the opinion of a certified, licensed professional real estate property appraiser.

This will give your client a full understanding of the valuation of the property prior to it being listed. Now you will have a less emotional conversation with your client about the pricing strategy.

Have the Appraiser set the price. How does it work?

It is really simple. Explain to your client:

“A 3rd party, unbiased professional local appraiser, that does this every day, provided us an opinion of value at $450,0000. I’ve reviewed the report and I trust the appraiser’s judgement. My recommendation is to price it there.”

This will definitely be a much easier conversation to have with some clients. The appraiser is the one that suggested the market value of the home… Not the real estate agent. Often times, the appraisers opinion of value will support and back up your recommendation or findings!

In some cases, it is beneficial for the seller with optimistic expectations to have a home appraisal prior to listing it for sale. Remind your client the fact that a lender will not lend a buyer more money than a home is worth or appraises for.

True, the mortgage lender will have the property appraised as part of the mortgage process. Yet, bringing in your own expert may give your client a clearer sense of what a lender may think the home is worth and thus can be priced accordingly.

It’s better to price the home in line with other properties and potentially attract multiple bids. Rather than aiming too high and continue to reduce the price months after sitting on the market.

Also, no one wants to find out a week before closing

This article provides a brief, general introduction to the topic. This is not legal advice. Please contact an attorney to provide legal advice. As with any legal matter, we highly recommend consulting with an attorney.

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As a local Realtor, I have had the opportunity to work with Michael on numerous occasions while selling real estate in the Naperville area. With his vast experience and wealth of knowledge, combined with the willingness to explain the details on an appraisal report, I’m always pleased to know that Michael has been assigned to one of my listings. He is always prompt and performs the necessary evaluation in a timely fashion. Michael recognizes the value of my time which is important to any real estate agent. He is unbiased and fair with all appraisals. When clients and friends ask me who would I recommend for their appraisal needs, I never hesitate to provide them with Michael’s name.

Nancy Fattore
Re/Max of Naperville, The A Team

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