NAR (National Assoc. of Realtors) posted top 3 Seller concerns. One of them was: "Price Their Home Competitively" “They're telling us that puffing their egos with a fat listing price isn't what
they want. They want their property to sell.”
So, I thought "put your money where your mouth is" since I suggested Pre-Listing Appraisals in order for all 3 top seller concerns to be met. Based upon our pre-listing appraisals in 2018, the sellers
who placed their homes on the market and listed them CLOSE to our appraised value, the Days On Market for these homes (many of them lakefront) averaged 34 days! The average for similar
properties is around 50-60 days. In 36% of the cases they sold in 10 days or less. In only 1 case over 120 days. In some cases the owner got more than their listing price as they priced it very well.
In the cases where the owner decided to list WELL over our appraised value (meaning over 10% of value) not a good story! Longer DOM than typical and price reductions, sometimes several. In many cases they changed
REALTORS! Not good! When that 2nd Realtor listed closer to appraised value...Bingo they get the SALE & commission!
So for 2019, consider a Pre-Listing or POST-Listing Appraisal if your home is on the market longer than 60 days. This could be your bullett proof marketing tool to close more deals quickly.
We hope 2019 is one of your best years yet, but in order for that to happen you have to pull a few tricks out of the marketing bag as all indicators are that the market is slowing a bit for 2019 with 2020 the possible
start to some major corrections!
As a Realtor you may think great, NO appraisal! No worries..Not so fast!
As a Buyer you may think great no appraisal...that saves me money and that must mean the home I am purchasing is worth what I am paying....Not So Fast!
What is a PIW? (It is a misnomer for one). It means that Fannie has decided the buyer and property are a good risk and waives the Appraisal on
the home. They accept the estimate of the home provided by Lender as valid. "A prior appraisal has to be in the Fannie MAE CU (Collateral Underwriter File...for a waiver to be offered)." THIS
PRIOR APPRAISAL MAY OR MAY NOT BE ACCEPTABLE FOR A HOST OF REASONS and a prior apraisal should NOT in my opinionhave any bearing on a CURRENT valuation of the property.
So you are a Realtor and you are thinking great I do not have to worry about an appraisal killing my deal. IF you are a Buyer's Realtor you need to have their best interest at heart and not let them over pay or it could come back
to haunt you.
In this law suit happy world you need to be very careful. If your buyer gets a PIW on that loan at the very least you need to suggest to the buyer to get their OWN appraisal. Then you need to document your file and
let them decide. As part of the recommendation you need to tell them that a PIW does NOT mean the home is CURRENTLY worth what they are paying since they are relying on prior appraisal data and other valuation vehichles other than an appraisal.
The only way a buyer truly knows current value is by getting an appraisal OR taking your word for it based upon your data. Not a wise choice because if later down the road they decide they paid too much and no one told them that
they had the choice of getting their OWN appraisal, guess who they will come after first...THE REALTOR.
As a buyer, many may think the lender has decided that their home is worth the sales price. This is NOT true. They are relying on prior data that may be flawed and outside valuation sources and not an actual appraisal.
So while many may be thrilled with the prospect of a PIW. Think twice, protect your buyers and do the right thing! ADVISE your buyers to get their own appraisal and then if they decide NO, you have done your duty to so advise.
This should also be the case with CASH buyers!
Thanks for reading and please feel free to SHARE!
Thanks to the people of Hall County, GA who voted Lanier Appraisal Servicethe BEST Real Estate Apprasier in Hall County, GA. We are humbled and we thank you.
Thank you to THE GAINESVILLE TIMES for putting on a great party for all the winners in their respective business categories!
2018 is looking up!!!