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 firstname.lastname@example.org or 215.836.5500.