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Let’s End the Trend

January 31, 2017 by MCoyle 2 Comments

For the past few years I’ve been noticing a trend in how homes, particularly new construction, are being marketed. Perhaps you’ve noticed it, too. What I’m referencing is the inclusion of finished basement space in the overall Gross Living Area (GLA) calculations. (I’ve even seen it where one agent included the roof deck in the overall GLA because the deck was covered)

I get it. From a marketing perspective, bigger is better. Everyone wants to be able to say that their home is larger. I guess size does matter when discussing square footage. The only problem is that this practice can be misleading and can contribute to inaccurate appraisals and failed deals.

Picture this. There is a property in Point Breeze. It’s new construction, three stories, finished basement, roof deck…the same house that everyone is building right now. The agent and developer market the property as being 4 bedrooms, 3.5 baths and 2,400SF of living space. Now, 600SF of that space is entirely below grade in the basement and contains one of the bedrooms and a full bath.

Along comes the appraiser. From the appraiser’s point of view the house is a 3 bedroom, 2.5 bath house of 1,800SF above grade. There is also a 600SF finished basement that contains a full bath and a room that could be used as a 4^th bedroom. The appraiser will assign contributory value to the finished basement and the rooms down there but, they will not be included it in the above grade GLA. The reason being, most appraisers adhere to the ANSI Guidelines for measuring a dwelling. These guidelines state that only above grade living space is to be included in the overall GLA for a property. Anything below grade is finished basement space. (For a copy of the ANSI Guideline, just email me)

This trend can effect the selection of comparables and by extension have an impact on the appraised value of a property. If an appraiser inspects a property and determines it to have 1,800SF above grade and 600SF below grade, the appraiser is going to select comparables that are closer to 1,800SF, not the 2,400SF reported in the MLS listing. This could result in the selection of comparables that are smaller and worth less money. This could adversely impact the sale.

Also, imagine the confusion of the new homeowner when he reads the appraisal. Here, he thought he just bought 2,400SF home but, the appraiser says it’s only 1,800SF. In the buyer’s mind, they just overpaid. There are likely to be some angry phone calls as a result.

But there’s hope! The Trend MLS allows agents to separate the above grade from the below grade living space when listing a property. This helps paint a more accurate representation of the living space within a building. It also helps appraisers make more accurate comparisons to other homes. I would love to see this become the new trend in Philadelphia real estate, where agents and appraisers are on the same page and above grade and below grade living spaces are separately reported.

NOTE: If you ever have a question as to what the actually GLA is for a given property, have the house measured. Many appraisers will perform this service as will a number of “measuring” companies.

The Coyle Group’s team of Philadelphia Real Estate Appraisers are a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com

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Filed Under: Featured Tagged With: agent, appraiser, developer, Philadelphia, Philly, Point Breeze, Seller

ATTENTION AGENTS!!!

June 7, 2016 by MCoyle 6 Comments

Attention all Real Estate Agents! Do you want to stand out from the crowd and really stay in the minds of your clients and prospects?

Well, you’re in luck…its tax appeal season! For the next few of months homeowners across the Philadelphia region will have a chance to appeal their tax assessments. This is a great opportunity for real estate agents to reconnect with current clients, old clients and prospects! It’s also an opportunity to bring real value and show them that you’re not just any-old real estate agent but, a trusted partner who is looking out for their best interest.

Over the next few weeks, try reaching out to your old clients and prospects suggesting that they might want to consider appealing their taxes. Show them that you’re looking out for them and want to help them save money. Imagine how happy your client would be if you were able to help them save hundreds or thousands of dollars off their tax bills each year!

If you have any questions on how the assessment and appeal process works (in Philly, Montgomery, Bucks, Delaware, Chester or Berks Counties) or how to figure out if your clients/prospects would be good candidates for an appeal, please feel free to contact our office.

The Coyle Group’s team of Philadelphia appraisers are a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com

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Filed Under: Featured Tagged With: agent, agents, bankruptcy, Berks, Bucks, Chester, Delaware, Divorce, Estate, Montgomery, Philadelphia, Philly, Pre-Listing, Probate, real estate, tax, Tax Appeal, tax assessment

Appraisers Helping Philadelphia Realtors

October 7, 2015 by MCoyle 3 Comments

Hi Everyone. Thank you for all your support of the Philly Appraisal Blog over the past couple of years. In an effort to take the Appraiser/Realtor interaction to the next level I’ve created the Appraisers Helping Philadelphia Realtors Facebook group!!

The group was created to be “THE” go-to source of help and information for realtors in the Greater Philadelphia region looking for answers to their appraisal questions, to stay at the forefront of appraisal issues that are affecting the real estate industry and to bridge the gap of misinformation that often exists between realtors and appraisers in Philadelphia’s ever changing marketplace.

As part of this group, we have assembled a network of “THE” top appraisers locally and nationwide whose focus is on helping Philadelphia Realtors. You’ll notice that some of the leading real estate professionals in the Philadelphia area are also members, including the top agents, brokers and mortgage professionals. All are here to share ideas, provide information and help realtors and their clients in making informed real estate decisions and provide solutions to your valuation questions.

From time to time we will spotlight members of the group so that you can hear their story, learn from their experiences and network with your peers.

We will also be posting PDF files that may be helpful on topics such as “FHA Repairs”, “How to Contest a Low Appraisal” and “How to Calculate the GLA of a House.” So, be sure to check the “File” button under the cover photo.

Please accept this invitation to join the Appraisers Helping Philadelphia Realtors FB Group by clicking on the link or image above. You are encouraged to introduce yourself to the group, get involved, share your stories and ask questions. Also, please feel free to tell other Philadelphia real estate agents and brokers about the group.

Get involved, ask questions, share your experience and add value!

Thanks!

Mike

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Filed Under: Ask PAB!, Featured Tagged With: agent, appraiser, appraisers, facebook, Philadelphia, Realtor

The Tale of the Tape & Accurate GLA

August 28, 2014 by MCoyle 8 Comments

Did you ever wonder where the square footage in the Public Records or MLS comes from? Well, it can come from a number of places.

The square footage found in the public records is typically from the county Assessor’s office. This information, while official, can be quite dated and inaccurate, especially with older homes that may have had additions. This data was likely collected at the time of the county’s last reassessment, which in some cases was decades ago. For instance, Montgomery County hasn’t done a reassessment since 1998. Prior to Philadelphia’s recent reassessment the City had not done a countywide reassessment in over 40 years! Even with the 2013 revaluation, the Philadelphia Assessor’s office did not physically measure every property. Many were inspected using aerial photos and measuring software.

The MLS is a different animal. There are basically three sources for square footage that can be cited in the MLS, all of which are subject to inaccuracies. The first as mentioned above is the Assessor’s office. The second is the Listing Agent and the third is the Seller of the house. Often, Agents and Sellers will ballpark, estimate or even guess the square footage of a house. Some will lump in finished basement space or enclosed porches as overall square footage. I’ve even seen garages included as living space.

There are also inconsistencies in the methodology used by the three sources. In some of the counties surrounding Philadelphia the square footage listed in the public records will include finished basement space in the Gross Living Area (GLA). Then, under that number they will then report the amount of finished basement space. The correct way to examine these numbers is to back-out the finished basement space from the Total Square Footage and what you’re left with is the more accurate representation of the true GLA. For more information on how finished basements affect the overall GLA read our previous post on the subject Finished Basements & GLA

Certain housing styles like Split Levels and Cape Cods can also add to the confusion of the home’s true square footage. There are actually established standards for measuring homes that are put out by the American National Standards Institute. (For a copy of these guidelines send me an email request)

For agents in particular getting the square footage wrong can be a real problem. Misrepresentation of a home’s square footage is the most common reason why real estate agents get sued. We had a case last week where the agent assumed the square footage in the public records (1,728SF) was incorrect. She assumed that the addition off the back was not included because “the house just felt bigger”. So she estimated that the addition made the house around 2,000SF and for good measure included another 300SF for the partially finished basement.

As it turned out, the square footage in the public records was pretty accurate at 1,728SF. After measuring the house our appraiser arrived at 1,724SF. That’s about as close as you’re going to get. The finished area in the basement was closer to 242SF. All in all, the agent misreported the GLA of the house by over 570SF. That’s the equivalent of a 20’ x 28.5’ room. Big difference.

What I would suggest is if you are not going to measure the house yourself hire someone to measure it for you. Most appraisers will measure a property and provide you with a sketch for a fee. The measurements will be more accurate and will give you something to hang your hat on when listing a property. For more information on the home measuring services provided by The Coyle Group call us at 215-836-5500.

The Coyle Group’s team of Philadelphia appraisers is a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing appraisals in the greater Philadelphia Metro Area. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com

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Filed Under: Featured, Listing/Selling A House Tagged With: agent, appraiser, assessment, assessor, GLA, measuring, Montgomery County, Philadelphia, square footage

FHA Repair Do’s & Don’ts

July 31, 2014 by MCoyle 6 Comments

If you have Sellers who are willing to accept FHA financing from Buyers, make sure you/they understand these two words…professional and workmanlike. The reason being, HUD requires that all repairs for FHA insured loans be completed in a professional and workmanlike manner. If they are not, the financing may be denied.

Now, I understand that most Sellers aren’t thrilled about making repairs to a house they plan on selling. Some Sellers figure if they do the bare minimum repairs everything will be fine. However, if the repairs are not completed in a professional and workmanlike manner the deal could fall through. Here’s a real life example of how not to complete required FHA repairs. In this case, the FHA guidelines required that the exterior of all of the windows be scraped, prepped and painted. The Seller (who balked at the idea) came up with his own solution.

Well, needless to say this didn’t pass the professional and workmanlike standards of HUD. The appraiser deemed the repairs unsatisfactory. As a result, the Seller had two options, make the repairs or lose the deal. As you can imagine, his paint job didn’t exactly add value or make his house more attractive to a new Buyer. Eventually, the Seller decided to make the proper repairs. He hired a professional painter (at his own expense, over $4,000) to complete the job in a professional and workmanlike manner. The repairs were then deemed satisfactory.

Bottom line, when it comes to FHA repairs it pays to do them correctly the first time. If a repair requirement is unclear, reach out to the lender or appraiser for clarification. Doing so can save time, money and the sale.

If you are working with a Seller and would like to address potential FHA repairs prior to listing, please contact our office. We have a service available to homeowners and agents where one of our professional, certified and FHA Approved appraisers will visit your property and work with you to identify potential FHA issues.

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Filed Under: Featured, FHA Questions, Listing/Selling A House Tagged With: agent, appraiser, bankruptcy, Buyer, certified, Estate, FHA, FHA Approved, homeowner, HUD, Phildelphia, Probate, repairs, Seller

Geographic WHAT?!?!

June 10, 2014 by MCoyle 3 Comments

You may have heard the term Geographic Competency as it relates to appraisers. It’s been a hot topic in the appraisal industry for the past few years. It basically means that an appraiser has to be knowledgeable and capable enough to produce accurate and reliable appraisals within a specific geographic area. The appraiser should also have access to data about a geographic area. It’s the coupling of local knowledge and accurate data that can make the difference between a reliable report and one that’s not worth the paper it’s printed on.

As the appraisal market began to change over recent years, many appraisers found themselves expanding their coverage areas in an effort to stay busy. For some appraisers this meant working in areas with which they were not familiar. This often resulted in reports that were poorly supported and wildly off the mark.

If an appraiser finds themselves in a situation where they do not feel Geographically Competent, they have a few options. All are designed to protect the user of the report from getting inaccurate information from the appraiser.

1) They can decline the assignment

2) They can obtain the knowledge necessary to become competent to appraise in a certain area

3) They can seek assistance from another person who is Geographically Competent in that area

Over my 15 years of appraising in the Philadelphia market, agents have shared stories about appraisers coming from miles away to complete appraisals. My favorite is a tale of an appraiser from Parsippany, NJ who drove two hours (both ways) to complete an appraisal in Philadelphia. That’s insane! Not to mention that after time and travel the appraiser was literally working for peanuts!

But keep in mind that an appraiser doesn’t have to live close to a property in order to be competent to appraise there. Most appraisers are capable of appraising in several different counties or even states. I have an appraiser friend who lives in Lower Bucks County and routinely appraises homes at the New Jersey shore. It turns out that he has a house down there and actually worked in that market for several years. He’s competent to appraise there even though he lives in PA.

If you find yourself in a situation where you are not sure if the appraiser has experience appraising in your area, talk with them about it. Interview the appraiser. Ask about their experience in your area. The answers you receive could save you from a “bad” appraisal.

Do you have any stories about appraisers traveling far and wide to look at properties? If so, please share them.

The Coyle Group’s team of Philadelphia appraisers is a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing appraisals. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com

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Filed Under: Featured Tagged With: agent, appraisal, appraiser, appraisers, bankruptcy, Divorce appraisal, estate appraisal, geographic competency, Listing, New Jersey, Philadelphia, Philadelphia Appraisal, PreListing Appraisal, probate appraisal, Tax Appeal

What Philly Agents Are Saying About 2014

April 22, 2014 by MCoyle 2 Comments

As a Philadelphia Real Estate Appraiser, I know what trends I’m seeing day-to-day in the neighborhoods of Philly. However, I thought it would be fun to ask some area Agents what their thoughts were on a couple of issues. Below are the questions I asked along with some of the responses from some of the Philadelphia region’s top agents.

1. How would you describe the Spring market in Philadelphia Metro area so far? and where do you see it going for the remainder of 2014?

2. What do you think has the greatest influence on the market right now…Inventory? Interest Rates? Buyers back in the market?

Mark Wade

Center City Condos

www.CenterCityCondos.com

I hear a lot of talk about the up’s and down’s of today’s market. And what most Realtors are witnessing is multiple offers, properties selling at or above asking price and a decreased “days on market” statistic.

For the majority of the Center City market, there are more buyers than available inventory and the shift in that relationship will give rise to actions that we see more of today than we would have even six months ago- such as multiple offer bidding. I just encountered three offers on the same home in one day and that home had sat idle for almost two months.

Also becoming common are full asking price offers or even over asking price offers. I think it makes sense (many buyers see the time as being right to snag a condo out of the clutches of others and are therefore willing to put their best foot forward). I am now telling my buyers that IF they see a home they want – do not hesitate to go in quick and strong. Because nothing is more painful than a bidding war. Good for sellers, not so much for buyers.

Lastly, Realtors I speak with also confirm that they are seeing a decrease in the “days on market” calculations. Many homes are selling within days, even hours after being listed for sale

I think the biggest influence today is the lack of overall inventory.

Dan Caparo

Coldwell Banker Preferred

Vice President
www.DanCaparo.com

Although we had a setback in sales due to the harsh winter for the first quarter for 2014 the spring real estate market has arrived and is brisk for buyers and sellers alike. Our Real Estate market is built around school year more so than the seasonality of the warmer months – they just happen to go hand and hand. People like to have their children finish school at their current district and start fresh with a new one by September. There is a considerable inventory shortage in our regional marketplace and well-priced homes don’t last for more than a week. I still find that price points of $800K+ are moving along in a more healthy fashion but still not to the level of the under $800K markets.

A housing shortage has a great impact followed by the continued challenges of mortgage financing and our tight money policy. As the mortgage market opens up and loosens its restrictive barriers and other investors [in addition to Fannie / Freddie] enter the home finance market we will see continued improvement in unit sales volume and appreciation. I believe that rates shouldn’t be a problem until they begin to reach 6%+ because at that point we will see affordability issues.

Matt Donnelly

Coldwell Banker Preferred

www.donnellyrealestategroup.com

BUSY! Any properties hitting the market that are priced right, move in ready, and in a semi-desirable location are going under contract within 3 weeks on the market. With rising interest rates and more consumers being approved for mortgages I expect 2014 to remain a hot market. Buyers are ready to purchase but need to act quickly because there is a lack of inventory of good, saleable listings.

There are plenty of buyers in this market, and interest rates are still historically low. The greatest influence right now appears to be lack of inventory. We need more sellers!

Frank DeFazio

Berkshire Hathaway HomeServices Fox & Roach, REALTORS
www.CenterCityTeam.com

The spring 2014 market is off to a hot start likely due to the pent up demand from a frustratingly cold winder and fears about potentially rising interest rates. Demand continues to outpace supply and so we are seeing a lot of multiple bids and escalation clauses which is driving home sale prices up. As long as inventory is low and demand is high prices will continue to increase, which is great for sellers but not for buyers.

Low inventory. Agents have been pounding the pavement for listings since January of 2013 but demand is strong and homes that are priced well and move in ready continue to sell in days, often with multiple offers. Builders have taken note and new construction inventory is coming towards the end of the summer but for now low inventory continues to cause feeding frenzies and high competition among buyers.

I’d like to thank Mark, Dan, Matt and Frank for their insights. I find it interesting that they all cited “low inventory” as being the greatest influence on the Philadelphia 2014 real estate market. I couldn’t agree more. This market is quickly turning into a text book Sellers Market. We all know when inventory is low and demand is high, prices will rise. That’s good for everyone…except maybe Buyers.

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Filed Under: Featured, Market Trends Tagged With: agent, agents, appraisal, centercitycondo, centercityteam, Dan Caparo, Divorce appraisal, estate appraisal, Frank DeFazio, inventory, Mark Wade, Matt Donnelly, Philadelphia, Philadelphia appraiser, Philly Agents, probate appraisal

Fighting a “Low Appraisal”

September 28, 2012 by MCoyle Leave a Comment

A friend of mine, who is an agent, called me the other day complaining about an appraisal that was completed on one of her listings. The appraiser (from a neighboring county) arrived at a value almost $45,000 under the contract price. She asked me if I could take a look at the appraisal and provide any insights that I might have.

It’s not unusual for values to come in lower than the contract price; and we all know that value and price are two separate things. However, there was such a large discrepancy, it warranted a closer look. After reviewing the appraisal, I did notice some issues that were of concern.

I recommended that the she ask for a Reconsideration of Value. A Reconsideration of Value is a formal request submitted to the lender asking their appraiser to consider additional information and/or sales data that might aid the appraiser and cause them to change their opinion of value.

Here are the steps that I suggested she take:

Go through proper channels. The appraisal is the property of the Lender who ordered the appraisal. You will have to submit your request for Reconsideration of Value to the Lender, usually in writing. The Lender will then decide whether or not the request has merit. If so, they will forward the request to the appraiser for review and response. Do not contact the appraiser directly. Remember that the appraiser’s client is the Lender; not the agent, the Seller or the Buyer. The appraiser can’t act on your request or revise his report without permission from his client, the Lender. Please note that the Lender can use their discretion and may deny your request without even presenting it to the appraiser.
Practice the 3 “Ps”. Be Proactive – initiate the request promptly. Be Professional – don’t get bogged down in personally attacking the appraiser or his skills, present your case in a professional, well-supported manner. Be Polite – appraisers are people, too. Really, we are. You will get further with your request if you simple practice good manners and politeness.
Support your request with good sales information and insights. Simply saying that “the value is not high enough” will not cut it. Be prepared to provide additional comparables and explain why they are more appropriate that those used in the report. If you have comments about the comparables used in the report, be specific and detail exactly why the comparable used in the report was not the best one available. If you work frequently in a certain market and have intimate knowledge of sales in the area, use that information to support your point. “Comp 3 was a nasty divorce situation and they needed to sell quickly.” Or “Comp 2 is actually 500sf larger due to a finished attic that is not noted in the public records.” Good, well-supported information will go a long way. And, if you are going to provide additional sales, make sure that they are truly comparable. Don’t just look for sales that will support your price. The appraiser and the Lender will see right through that. If your property is 3 bedroom Rancher, don’t include the 5 bedroom Colonial as a comp, even if it is located across the street. They’re just not comparable.
Be Specific. If you want to know why the appraiser made or did not make a certain adjustment or did or didn’t use a certain comparable, address it directly and specifically in your request. “Can the appraiser explain why he only made a $5,000 adjustment for the subject’s inground pool?” Or “Why did the appraiser elect not to use the sale at XXX Main Street, one block away?”
Keep it Short & Sweet. Don’t write a novel. Don’t get emotional. Get to your point, present your case coherently and concisely, provide supportive information and then, move on.

I hope these steps will help you if you ever find yourself in this kind of situation. Should you ever need any assistance with contesting an appraisal or submitting a Reconsideration of Value, please feel free to contact our office. We will gladly do what we can to advise you.

The Coyle Group, LLC is a Residential & Commercial Real Estate Appraisal firm serving the Greater Philadelphia Region and New Jersey. 215.836.5500

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Filed Under: Ask PAB!, Featured Tagged With: agent, Ali, appraisal, fighting, Listing, Low, property, value

Agent Alert!

March 29, 2012 by MCoyle Leave a Comment

AGENTS! Spring is here and these warmer temperatures will only help to heat up the Spring Selling Season. If you haven’t done so already, now is the time to take a hard look at your older listings and think about how they will compete in the Spring market. Perhaps, it’s time to do a little Spring cleaning and meet with your Buyers to decide whether they need to “reposition” (re-price) their listing.

You can bet this new crop of inventory will be priced to sell. If you want to contend with these new listings, you need to have a competitive price. Proper pricing is the key!

One way to test the market is to have a Listing Appraisal completed. Now, having an appraisal completed on a listing is not necessary for all situations. However, if you have a unique property or a stubborn Seller, a Listing Appraisal may be the way to go.

The obvious benefit is that a Listing Appraisal will provide you and your client with an unbiased, professional opinion of the property’s current fair market value. Aside from that important fact, there are other benefits to having an appraisal completed on your listing.

As an agent, having a Listing Appraisal completed allows you to still “be the good guy” and maintain your client relationship while adjusting your Seller’s expectations. Unfortunately, some Sellers refuse to believe that their home has been affected by recent real estate trends or, perhaps, they feel that shag carpeting and pickled-wood cabinets are making a come back with Buyers. Having an impartial appraiser look at the property could provide you with the insight and feedback necessary to help your Seller “see the light.”

A Listing Appraisal also gives agents and Sellers an idea of how a potential Buyer’s appraiser may view the property when completing an appraisal for mortgage financing. This way you limit the chance of being hit with any last-minute surprises or having to renegotiate your contract price because of a Buyer’s appraisal.

If your listing falls under the FHA program limit of $420,000 for Philly region, having a Listing Appraisal can provide added benefit. Some appraisers will actually perform an FHA-style inspection when looking at your property and incorporate their findings in their appraisal report (our office does this as standard practice). This will give you and your Seller a heads-up on any potential FHA issues that may affect your Listing. That information can be used to correct the problem, possibly eliminating future headaches, negotiations and wasted time.

So, what’s the cost? Well, typically a Listing Appraisal will be in the $300-$450 range (sometimes more if the property is unusually large or complex). However, if you think about it, this is a relatively small investment if it can minimize your listing’s time on the market. Or look at it another way…would you (or your Seller) be willing to pay $300 if you knew that your listing could sell faster and that you wouldn’t have to waste weeks dealing with hidden FHA issues, negotiations and stress?

Think about it…and have a great Spring!

If you have any questions about Listing Appraisals or any other appraisal related question, please feel free to contact our office at appraisals@coyleappraisals.com or 215.836.5500.

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Filed Under: Featured, Listing/Selling A House Tagged With: agent, appraiser, FHA, Listing Appraisal, Philadelphia, Philly, Seller

The Importance of Listing Appraisals

February 21, 2011 by MCoyle Leave a Comment

Last week temperatures in the Philadelphia area flirted with 70 degrees. Spring fever was definitely in the air. People were out and about; and for a day or two everyone forgot that it was still February. It got me thinking about the upcoming Spring Selling Season.

Traditionally, Spring is when the Philadelphia real estate markets start to shake off the Winter sluggishness and things start to pick up again. However, I can’t help but think this year may be different. Given accumulating inventories, high unemployment, impending inflation and the lack of a tax credit, the 2011 Spring Selling Season could be a challenge. Sellers and Agents alike will need to rethink their marketing strategies and pricing in order to be competitive enough to attract Buyers.

Pricing will be the key this Spring.

For Agents, this year more that ever it will be important to make sure listings are priced to compete. Not only will you have to compete with the older listings that are out there, you will have to go up against fresh, new listings that will be priced to move. If you haven’t thought about getting a Listing Appraisal, now is the time to act.

More and more, Agents and Sellers are having Listing Appraisals completed to aide their decisions about pricing and marketing strategies. They realize that in this market not only do you have to price a house to sell, you have to price it so that it will appraise, as well. Other Agents (your competition) are getting Listing Appraisals. Frankly, if you are relying on the same old CMA these days, it’s like bringing a knife to a gunfight.

Aside from helping to price a house properly, there are several benefits to having a Listing Appraisal done:

Demonstrates to the Seller that the Agent is committed marketing the house effectively
Sets realistic expectations for Seller
Provides Seller with an unbiased opinion of how their home compares to others on the market
Helps maximize the asking price without overpricing or under-pricing
Can help identify potential problems, repairs or issues present at the house that may cause delays or make the sale fall through
Gives the Agent/Seller an indication of how a potential Buyer’s appraiser may view the property which could have an affect on the Buyer’s ability to obtain financing
Can help reduce days on market, resulting in higher selling prices and possibly eliminate unnecessary negotiations
Saves time, money and effort

Selling a home can be a very emotional process. Perhaps the most important benefit of a having a Listing Appraisal completed is that it allows Agents to maintain client relationships without having to be the bearer of bad news. The Appraiser is the one to present any unpleasant or “bad” news to the Seller. The Agent is there to aide the Seller with interpreting the news and devising a strategy to sell their home.

Listing Appraisals can also provide some level of defense against issues arising from the HVCC Guidelines; namely, appraisers who are unfamiliar with your market, inexperienced appraisers and appraiser who may not have access to the best data for your market. The Listing Appraisal will provide a benchmark against which any subsequent appraisals can be measured.

So, as the Spring Selling Season begins to heat up, it is time to invest in your own success and that of your Sellers. Get a Listing Appraisal from a Certified Real Estate Appraiser. For $300-$450 depending on the size and complexity of the property being appraised, Agents and Sellers can get a solid understanding of the value of a property and use that information as a tool to develop the best pricing strategy possible for the property.

For more information on Listing Appraisals please contact The Coyle Group at 215.836.5500.

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Filed Under: Featured, Listing/Selling A House Tagged With: agent, appraisal, Buyer, certified, HVCC, Listing Appraisal, Philadelphia, real estate appraiser, Seller, Spring

Let’s End the Trend

ATTENTION AGENTS!!!

Appraisers Helping Philadelphia Realtors

The Tale of the Tape & Accurate GLA

FHA Repair Do’s & Don’ts

Geographic WHAT?!?!

What Philly Agents Are Saying About 2014

Mark Wade

Dan Caparo

Matt Donnelly

Frank DeFazio

Fighting a “Low Appraisal”

Agent Alert!

The Importance of Listing Appraisals

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