Why Did My Home Appraise for Less Than What I Agreed to Sell It For?

Knowing How Home Pricing Works Can Avoid Appraisal Issues

When it comes to selling a home and avoiding problems with appraisals, it takes a skilled real estate agent who understands the appraisal process to avoid issues that could potentially kill your deal! If that happens you may be asking yourself, “why did my home appraise for less than what I agreed to sell it for?”

For several years now, property values in the Long Beach and Lakewood areas have been increasing. This plus the fact that we have limited inventory on properties that are priced well and many times some homes may end up selling for more than they are listed for.

As a Listing agent, my job is to make sure and provide the assigned appraiser with three GOOD comparable sale for them to use in their valuation process.
This marks the difference between a good agent and a “not-so-good agent”!

A good agent will meet the appraiser at the property and come prepared with information on comparable properties. I always go through the improvements of the property with the appraiser to ensure they are aware of all the features of our subject property.

PLEASE NOTE THE VIDEO BELOW WAS RECORDED IN 2013 but the information about why a GOOD AGENT should meet the appraiser is still true today.

WHAT IS A COMPARABLE SALE?
Must be within the same city, within customary neighborhood boundaries, preferably within ¼ mile of the subject property but no more than ½ mile and within the past four month. They size also need to be a like-type property and within 150 Square feet of our listing; for example if our home is 1200 sq. ft. then we would use homes between 1050 and 1350 sq. feet.

WHAT ABOUT ACTIVES AND PENDINGS?
Appraisers will look at these but they do give them much weight to the value. The sold properties are the only thing that can be realistically considered a true comparable. My job is to inform the appraiser why your home is worth the price we accepted an offer for and how the home differs from the properties that may have sold for a lesser amount.

SO WHAT HAPPENS IF WE STILL DON’T APPRAISE FOR THE SOLD PRICE?
In a rising value market such as the one we are currently experiencing (Spring/Summer of 2013) my strategy is and always will be to do everything I can to prevent an under-value issue but we don’t have to accept that under-value appraised value.

WE HAVE THREE CHOICES TO MAKE
1. Reduce the price to match the lower appraised value.
2. Ask the buyer if they are willing to pay more and/or perhaps meet them half way.
3. Rebut the appraisal and determine why the appraiser did not consider the comps that we felt were a good representation of our subject property’s value.
In conclusion … when hiring an agent to sell your home, make sure they understand this appraisal process and are experienced in the successful resolution to problems should they occur.
If you would like more information about this subject … just give me a call 562-882-1581 or visit www.SuperBroker.com

Contingency Sales and the Challenges of buying real estate as a second time, move-up buyer.

 

What is a Contingency, Concurrent Closing Sale Anyway?

Contingency Sales and the Challenges of buying real estate as a second time, move-up buyer. Why it is important that the agent you hire understands the ins and outs of handling this type of transaction?

Second time home buyers are different as they have a clear understanding of what they are looking for in their next home. But the challenges of avoiding a triple move can be difficult to overcome if the agent you hire is not experienced in handling this type of transaction.

Selling your existing home and buying another property and having both escrows close together can be very difficult if not handled correctly. Buying and/or selling real estate is stressful and challenging enough without complicating the situation with problems that are easily avoided.

Allison talks about how to overcome the challenges of selling & buying at the same time.

So where do you start?

When hiring an agent to sell your existing home make sure and interview at least two or three agents to determine their experience in the concurrent closing of a contingency real estate sale.

Beware of the advice that an agent may give you about just selling your current home first to get that part of the transaction out of the way … after all; you would still have the cash in the bank with which you would use to make your next purchase. View the video I published that goes into more detail as to how harmful this strategy can be and how you may actually lose money in the long run!

Hiring an agent that is experienced and who has successfully closed concurrent, contingency real estate transactions in a rising home value market is critical to your success as a seller and second-time, move-up or empty-nest home buyer.

In my video I further explain how I recommend proceeding should my home sellers not be successful in finding their next home within the specified period given in the sales contract of their existing home.

For more information or to discuss your individual situation, just give me a call.

Allison Van Wig 562-882-1581

Long Beach and Lakewood Property Listings Heed the Call of Spring

Spring Property Listings -- Reasons Why They Move



With spring in the air, notions of fresh starts and new horizons have a way of pushing into just about everybody’s consciousness. It’s only natural, whether because of the weather, school schedules, or everything else around us that seems fresh and new. And something else is in the air, too: if past history is any guide, now is also simply the most popular time of year to sell or buy in the Long Beach and Lakewood area property.



For those with a home to sell, this is traditionally the most active time to be in the real estate market. Homes entered in local property listings during springtime can be expected to attract buyers more quickly, and they stand a better chance of fetching a good price. With 60% of moves in America taking place during the summer months (most likely a reflection of the school year schedule), it stands to reason that spring is a great time to get your Long Beach or Lakewood property onto the market.



For potential homebuyers expecting to shop for a new home sometime this year, there is ample reason to swing into action sooner rather than later. Long Beach and Lakewood property listings can be expected to conform to the national trend: at a rapidly rising rate, Realtors® expect constant or higher residential prices in the coming year (73% vs. 62% just three months ago, according to the NAR). Following the past few years of price declines, it won’t be surprising if the market’s recovery brings a rapid rise in prices. Then the bargains people have begun to take for granted could quickly become tomorrow’s regretful “I could have bought that house for only $---” stories…that happens again and again. Those who know they are going to be in the market this year should seriously consider getting in the market!



For both buyers and sellers, spring is the most popular season for a number of reasons. Especially for families with kids in school, or anyone whose business is geared to encourage summer vacations, it’s also the most sensible time to act. Whether you will be adding your own contribution to our area’s property listings, or beginning to comb those property listings to zero in on a new home, do get in touch with me to help make this spring the one that makes 2012 your Year of the Big Move!