Dear Homeowner,
The current housing freefall and tightening credit markets continue to put pressure on home sales in all price ranges. For you to be successful selling your home in this market you need to be prepared to move swiftly when prospective buyers show any interest in your property at all. Put yourself in the buyers’ position. The most common concern facing buyers is always financing. Those buyers know that when they approach lending institutions for a home loan, the entire deal hinges on the property appraisal. The appraisal is the only document that confirms to a “Lender”, and especially the “Purchaser”, the homes current value and all too often is left until the very last moment because it is a nominal cost that has to be paid even if a deal falls through. If you have an appraisal available to them, they know where they stand.
You need to consider this:
Buyers are skeptical of home values right now and need reassurance that they are considering a fair price and offer for your property. Lenders too are also leery of making bad loans and are increasingly more demanding of data supporting home values because of unreliable AVM’s, (Automated Valuation Models), (BPO’s), Broker Price Opinions etc. It has been these unreliable, unchecked data resources that have contributed to upsetting the valuation process resulting in today’s chaos. The only reliable action is to have a qualified appraiser do an on-site observation of the subject property and complete a thorough appraisal process. In the near future, I beleive the primary lending institutions will emphisize the need for appraisers involvement earlier in the transasction process to help return public trust to the mortgage process.
I am advising my clients and especially homeowners who have their property on the market to get an Appraisal “Up-Front”, in order to alleviate this apprehension and help purchasers to “Sign that Contract”. In the past, buyers were worried if they were making a good or even a fair deal on a home purchase. Today, they worry about losing value after their purchase. The minimal cost to you to have this document now could turn pensive “Lookers” into “Buyers”. If that sounds good to you, it should. You should know that you usually pay this cost anyway as a seller closing cost concession. So why not be ahead of the curve? The longer your home is on the market the more potential for loss. When your real estate is not making you money, it is losing it.
My Recommendation:
You need to have a current, Professional Appraisal Report “On-Site” at the selling location available to everyone that looks at your property confirming its value. A buyer knows the seller and the agent have a vested interest in the homes asking price. The appraisal is the buyers only refence without bias. Since the prospective buyer will see an un-biased opinion of the homes true, current value as seen by a Professional Property Appraiser they will be more likely to make you an offer. You as the seller also need to make sure your home is properly priced in its market to sell. Market conditions are changing daily. You might even have your home under-priced. Another thing, you must remember that buyers are looking at competing properties along with yours and you must set yourself apart to have an advantage that makes your property be the one that sells. The value support of a professional appraisal confirming your homes value will do just that.
This document is necessary to make a transaction anyway and will transfer in most cases depending on the purchasers’ financial position and the lender they choose. When you have your property appraised by Appraisal Works of East Tennessee, you will receive a complete “Full Appraisal” report identical and in the format suitable for typical conforming loan financing both in hard copy mailed to you and in electronic form so it is available via e-mail. If you are unsure, ask your agent what they think of the idea.
I invite you to call on me to discuss this terrific opportunity free of charge.
