PROPERTY VALUES IN TODAY'S MARKET

If you are thinking of selling your property, you need to know exactly what it is worth by today's standard because things have changed significantly in the past couple of years.

You cannot determine your property value based on what properties in your neighborhood sold for a few years ago, or perhaps even last year.  Values have been on a constant downward slide since the market started to fall in 2007.   That downward slide continues  today, perhaps at a little slower pace than in 2009 and 2010, but we are still in a declining market scenario.  

Bank Owned (REO'S) and Short Sales have dominated the market and that makes it very difficult to determine value.  A current Comparative Market Analysis is a good way to start but you may find it necessary to have an actual appraisal done.  There is nothing more disappointing to a seller than to finally get an offer on a property only to have it fall apart due to a low appraisal.  Take my word for it, this happens more often than we would like.  Sales ready to close are shut down at the last minute by an underwriter who decides they need a second appraisal or even a Private Mortgage Insurer who feels the property is priced too high and wants another opinion. 

Buyers and Sellers both find themselves in the terrible spot of having to put out more money to satisfy the lender or let the property sale go sideways.  Obviously no one want the later but the Seller most of all.  They may have already spent money to do repairs to satisfy the buyer, they may be packed and ready to move, or worst case, they may have already moved and the sale on the property is threatened because someone doesn't like the valuation of the property.  

So how to you prevent this from happening?  Hire a professional right from the start and listen to what they tell you.  It may not be what you want to hear but a good agent is going to tell you the truth so that when that offer does come in you can believe it because your agent has already told you what your property is going to sell for.  That is still no guarantee of a closing but it is certainly better than overpricing a property on a wish and a prayer, only to have the sale fall apart because of an appraisal or a underwriter who is overly conservative.

Keep in mind, lenders really are shy about lending these days.  They have been burned over and over again in the past few years and only the best qualified buyers and the best priced homes are going to sell.  To be truly competitive in today's market not only does your price need to be in line with others in your neighborhood, but truthfully, you would be in a better position if you are lowest priced property on the block.  In declining markets, lenders want to see the pricing on a property below market so if the value falls further they are not in a position of having a loan amount greater than the value of the home.  That is how we got in this mess in the first place.

If you would like assistance in determining value in today's market, give me a call.  I will help you decide where you should be and what you can expect at sale time.  As time goes on we may need to reevaluate but  you can count on me to tell you the truth about your property and what is happening in your neighborhood and community.  I will help you get the property on the market and do my utmost to help you sell it.

Give me a call, and let's talk.  There is never a charge for talking.

Have a wonderful day and I look forward to hearing from you soon.

Sandra Paulow, Associate Broker, GRI, REALTOR® 

Your High Country Connection for Real Estate.

(928) 242-0300