13 Oct Market Update and Advantages of a Pre/Post Listing Appraisal

Market Update-

In  a recent blog this summer, I discussed how seemingly some neighborhoods that have increased in 2016 seemed to be leveling off. As we head into fall, I’ve continued to notice this trend of stabilizing and/or leveling off of prices in many neighborhoods. To help identify new or changing trends, I always find it helpful to run data in 3 month increments. I’ve found trends can begin to form in this period vs. longer stretches of time (ex. 6 month increments) and can help our analysis. Keep in mind that there MUST be a good sample of sales available as too little will not be an accurate gauge.

I also find it helpful to analyze two separate searches. (1) Analyze the entire neighborhood or defined market area of ALL sales, pending sales, active listings. And (2),  Analyze the comparable market for the property in question (example- Subject is 1,500sf- Thus, review sales in the 1,200-1,800sf range).  Analyzing both searches separately helps see the market in a different light and provides clarity at times.

Some neighborhoods are seemingly slowing down with higher days on market for active listings and pending sales. Lately, I’ve been completing more pre/post listing appraisals for clients. This tool has been great for all parties involved for a variety of reasons.

Pre/post Listing Appraisal Benefits-

1) The real estate agent and homeowner may have differing opinions of value and the appraiser may be able to bridge the gap with a realistic estimated value. Sometimes it may be owners (spouses, etc) that may have differing opinions of value. Some properties may be located in a non homogenous neighborhood without any apple to apple comparables. It is sometimes beneficial to get 2 opinions of value (appraisal and BPO) regardless to confirm estimate of value.

2) This will keep communication positive between the homeowner and agent and will hopefully contribute to the home selling quicker when listed on the market.  The process of selling a home can be a stressful and emotional process. Let an appraiser help as an additional party to assure the homeowner is selling their home at the highest and most realistic price.

3) Regarding post listing appraisals, after the home has been on the market with no offers and/or possibly little activity, let the appraiser offer another opinion before reduction as it is important to reduce a home into a price range that will induce a buyer. When a home is listed, there is a pocket of exposure time that is critical and offers the best chance for the home to sell. If the reduced price is still too high, then one may continue to miss out on this valuable exposure time.

I hope the above information is helpful. If you’d like to receive a quote on a pre/post listing appraisal, contact us below. Have a great upcoming fall!

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.