Recently I wrote an article on Appraisals and how important they are to all of the principals in a real estate transaction. I know, the whole idea of appraisals is still pretty boring, but it is vital that my astute clients understand. ALL the aspects of the appraisal process and how it affects each party in the transaction are UBER important. Currently (2016) we are experiencing a SELLER’S MARKET. Remembering that a seller’s market is one where there is less than a six month supply of housing. In some price ranges we are seeing as low as two months of available inventory. So many people, especially hopeful sellers, think that this is a time when they can push their “asking price” a little on the high side and it is worth “trying” to get more than the house is worth. I do GET IT. We all want to make up for the lost time when pricing was going in the opposite direction.
However, this is just something which we must be careful to monitor (assertive, aggressive pricing). If you really want to be able to play the “worth a try” pricing, then you must be willing to show “added value” to your buyer and ultimately to the appraiser. So how do you do that? Recently, you can check out the house I listed on Ball Road, we had an opportunity to exercise the principles of great pricing. The seller was willing to take suggestions in exchange for pushing their price a little bit. Notice I didn’t say “pie in the sky”, but a LITTLE BIT. The trade was that they hired a gardener to spruce up the grounds. They worked hard to clean and clean anything that was not needed from the landscaping, inlcuding all old pine cones, needles, and weeks, and trimmed up the trees. They pressure washed the house outside, and organized their moving boxes in the garage so that space could be SEEN and not just imagined. They had the septic pumped and the gutters cleaned and the leaves blown off the roof.
After the interior was very well cleaned including the windows and wood work, they re-arranged the furniture. It didn’t look as cozy and comfy to them and was not as practical for day to day living, but it gave the interior a sense of openness that was not there when they had the rooms filled with non essential furniture and art work. They cleared all the bookcases of their things and became willing to live in a staged home (this is often not fun for the person living there, as they are used to seeing their own things and not ours!). But they were WILLING to be do this because they wanted to stand out as the house that was READY for the buyer’s things, and were READY to move on. This sense of readiness, coupled with an immaculate, well staged listing, helped me to market this home to many different types of buyers. Not only THAT but we had an offer just six days from our listing!
The appraisal package was already created when I put the house on the market and the house and the agents are now ready for the sale process to go very smoothly indeed.
Make sense? Let me tell you the full story sometime, and see if YOUR home wouldn’t garner a higher price with a bit of sweat and preparation up front.