Appraiser
A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property.
Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market value of real property.
An Example
A cup of soda or coffee cost normally about $ 1-2, If a person tries to sell that at $ 3-4 no one will buy, simple reasoning because that is overpriced and market do not support that price.
When a gas station tries to sell gas at $ 6 per gallon, whereas the other stations are selling gas at 2-3 $, no one will buy gas from that gas station who has overpriced the gas.
The market, demand and supply decides the value of house. If buyer offers high price on a property.
That doesn't matter, because ultimately the lender will appoint appraiser, who will search 3 sold comparable properties and 3 active properties. The appraiser will compare the subject property with comps and determine the price.
In case the appraiser will come less the seller will have to reduce the price or buyer will have to come up with more money or there will be no deal.In case you list your house at more than value, every month you are likely to loose---Mortgage, insurance, landscaping, electrical, water bill, cleaning charges, pest control, fear of vandalism. Stress level will be high.
Correct pricing as per the condition of property is very important.
If your house needs repair, whether you will do repair or not, the best recommendation is to take bid for repairs from contractor, termite repair, well drilling company, sewer company, landscaper, fence repair guy.
The bids will help in convincing the buyers about expenses needed.
If you are selling or thinking of selling your home, please don’t make this common mistake as it could cost you a lot of money.
Here’s the deal, your home is only worth what someone will pay for it. No mater how much you bought it for, how much you owe, or how much you truly love your home, it is only worth what the market will bear.
Here’s a true story, although we changed some numbers for confidentiality reasons.
A home was listed for $400,000. After 500 days on the market, and dozens of showings, it never sold. The sellers were fixated on getting a specific price for their home and were willing to wait for “the right buyer”. The listing agent advised them to lower their price, but the sellers chose to ride out the market.
The sellers then felt like they needed a change, and re-listed the home with another agent for $375,000. Buyer clients of mine saw the home and liked it, but thought it was overpriced based on the other homes they saw on the market. They made an offer for $330,000, what they thought was fair and reasonable.
The sellers were a little put off by our offer and chose not to negotiate until we came up higher. My buyers were afraid of overpaying for this home and ended up buying something else. This home was then re-listed 5 months later with yet another agent for $349,000 and ended up selling for $300,000!!!
This scenario happens all the time everywhere throughout the country. We understand that losing money is extremely painful, but holding on to a depreciating asset is a losing proposition. You will lose money every day.
MORAL OF THE STORY: Buyers will purchase the nicest home in their price range. If your home is overpriced, buyers will buy something else. Period, end of story.
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About The Author
The above information pertaining to Cleveland Real Estate News was provided by Dan Schuman of The Schuman Team Howard Hanna. Dan is an Accredited Luxury Home Specialist and can be reached at 216-346-3235 or via email, danschuman@howardhanna.com.
Puneet Bhargava,
Your Realtor for life
Five Star Agent Award Winner 2012 and 2013
Executive Club Award RE/Max 2012-2013
Realtor, ( CA ) BRE Lic # 01859500
Commercial and Residential Real Estate
Certified Distressed Property Expert ( Short Sale Expert)
Puneet Bhargava, Broker Associate/ Realtor
BRE Lic # 01859500
Guarantee Real Estate Office BRE # 00859360
180 W. Bullard
Clovis, CA 93612
(Villa and Bullard)
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