how much to list

[slimjen]

All,
I am new to this forum also new to home selling. I had a appraisal done on my home to refinance in April 07. I was satisfied with how much it came back as. Now, I need to sell my house due to relocation but I don't know how much to list it for. I had a agent do a comparable. He stated that I should list my house for the amount of the comparable listing. I have completed 30,000 of renovations for the kitchen and the bathroom that he never saw before telling me what to list it at. Now he calls me to tell me another house went up for sale like mine within the neighborhood without any renovations for 15000 less than what my appraisal came in last year. I know the housing market is in trouble. My question is "would another appraisal come in lower than my earlier one less than a year ago just because another listing decided to list it lower than it's value? Do they factor in anything other than the appraisal? I have a potential buyer who is willing to give me the apparaisal price from April, but the mortgage company would insist on an appraisal. I just want my equity to purchase another home where I'm going. Please help.

 

[Bill_FL]

Why not have another appraisal done now?

 

[John Sergent]

SlimJen

There is a difference between Real Estate Agents and Appraisers. Your agent probably looked for active listings in your area to base a listing price on. Appraisers look at sold listing, active listings, the market etc. to come to an opinion of value. Bear in mind that an appraisal at best is good for about 6 months, in this market, less. Any lender would require an appraisal done for the puchase and would not loan for more than the value. With that said, there are somethings you can do. Contact more than one Realtor to see what they would list your home for. Get multiple opinions. I'm not sure by your statement, if you are trying to sell without a Realtor but if that is the case then contact the appraiser who previously performed the appraisal and talk to them about doing another for informational purposes. This will give you the current value and information to base your listing price on. You will have to pay for this but it is better to know what your dealing with before hand than after the fact. Don't assume that because you have put x amount of dollars into your home, you will be able to reap that return as it is more complex than that. Hope this helps and Good Luck!

 

[lizhorvath]

SlimJen,
Welcome to the forum.
Consider contacting a relocation firm. Often they'll require a couple of appraisals and from what I understand, they'll buy your house from you for somewhere in where the appraisals value it at.
Remember, if you had a realtor, "do a comparable", that One Comp does not an appraisal make. Ask your realtor for a Comparable Market Analysis or a BPO (Broker Price Opinion) which should come in a report format touting all the reasons you should choose that realtor/brokerage as well as what other sales and listings in your area compare to your home and a final recommendation of listing price.
If the realtor wants your business, they'll provide you with this service. Besides, it's free.
Finally, Remember that as the seller, you're the one that pays the realtors, so 6% of your selling price right off the top goes to pay them.

P.S. I'm sure your home is lovely, especially with the renovations you've invested in it. Please know that you'll not likely see a dollar-for-dollar return on those investments. However, hopefully you've increased the marketability of your home, that is, made it more attactive to a potential borrower, even if you've not increased the actual dollar value. Likely, a lovely home will sell sooner than a ratty one, which will save you over time in carrying costs.

Good luck! You'll likely receive a lot of great information from your post!

 

[slimjen]

Thank you for your warm welcome and response. I just want to be sure that my appraisal in April didn't shrink according to what the seller in my neighborhood decided to set their price at. I hate to think they have the power to bring my value down. Doesn't appraisers go by what's sold not what's on the market to be sold? Is there a difference in telling them whether you're getting appraised for selling or refinancing purposes. They asked me what I was getting the appraisal for and it seemed like it made a difference. I will think about having another appraisal to get an idea of where I stand now. I really need to sell asap but I am not willing to walk away from the equity I need for a down payment on another house. Does you think it'll cost me another 350.00. Thanks

 

[Webbed Feet]

<snip> .....
My question is "would another appraisal come in lower than my earlier one less than a year ago just because another listing decided to list it lower than it's value?

How is it you know this other listing is listed "lower than it's value?" ... I believe you are very confused. The market value of a home is what buyers are willing to pay, not what sellers want to list for regardless of what a seller needs or thinks.

Do they factor in anything other than the appraisal?

Does who factor in anything other than .......... ? I have no idea who you are talking about.

I have a potential buyer who is willing to give me the apparaisal price from April, but the mortgage company would insist on an appraisal. I just want my equity to purchase another home where I'm going. Please help.

I am completely lost regarding what help you expect us to give you. All I can say is you are selling your house today, not last April. And unless you put a lot of money down on that house, rarely in most normal markets do sellers have "equity," they did not already place in the house in the form of a down payment, in a SFR they bought less than a year ago. I suspect you are dreaming this is still 2005.

Webbed.

 

[Bill_FL]

Thank you for your warm welcome and response. I just want to be sure that my appraisal in April didn't shrink according to what the seller in my neighborhood decided to set their price at. I hate to think they have the power to bring my value down. Doesn't appraisers go by what's sold not what's on the market to be sold? Is there a difference in telling them whether you're getting appraised for selling or refinancing purposes. They asked me what I was getting the appraisal for and it seemed like it made a difference. I will think about having another appraisal to get an idea of where I stand now. I really need to sell asap but I am not willing to walk away from the equity I need for a down payment on another house. Does you think it'll cost me another 350.00. Thanks

Jen, taking some of your questions 1 at a time.

Doesn't appraisers go by what's sold not what's on the market to be sold?
We use both. We look at what has sold, but we also look at what is on the market. There is a principal in appraisal called "substitution". In the definition of market value, is the concept of most probable sales price as of the effective date of the appraisal. So, we look at sales to see what others have sold for. However, if your market is weakening, and people are putting like homes on the market for sale for less, why would yours sell for more? It is hard to explain why your home is worth, (making up numbers here) $200,000 when there are 3 homes just like it for sale in your neighborhood for $190,000. Why would anyone pay more for yours when they can get others for less?

Is there a difference in telling them whether you're getting appraised for selling or refinancing purposes. They asked me what I was getting the appraisal for and it seemed like it made a difference.

In terms of the value? No. The opinion of value offered by the appraiser should not be affected by that.

 

[slimjen]

Thank you for your response

 

[lizhorvath]

They may have asked the purpose of your appraisal because it will affect which form your appraisal is reported on. Also, an appraisal for a financial transaction must be ordered by the lender, and not the homeowner. If you order an appraisal, you will be considered the client, and the lending institutions will usually not allow the appraisal to be used unless they are the client listed. An appraisal for one client cannot just be "transferred" to any other entity as client. To do so would have to be considered a New Assignment, per the Uniform Standards of Professional Appraisal Practice, otherwise known as our Bible.