How Appraising Your House Wrong Can Make Deals Go Bad
Ben Schmidt of www.benschmidt.tv a Fredericton NB and Oromocto NB real estate agent video blogs about the value of your home and deals not coming together
It's always an interesting topic of conversation, when a Realtor meets with a homeowner about the value of their home. I base my value of opinion on the recent solds. I look for a very comparable home in a very comparable area, and find out what it sold for in the last 12 months... How many sold? Etc.
Often times homeowners and some real estate agents get fixated on the homes currently on the market. A typically thing I hear is "well the guy down the street wants this price, and he's got this and this, and my house is better..." My response to that is, what did he sell it for? Well it hasn't sold, and it might not sell, and if it does sell, it probably will sell at market value. So I don't get too caught up with the current listings, if I feel they are over valued.
It's interesting because I recently encountered a scenario that this topic came up. My buyer client offered on a home and it ultimately didn't get accepted because we couldn't agree on price. I had brought up more than 6 homes that sold in the last 6 months... These homes were the exact same home, in the exact same neighborhood as the subject home. We could easily see what they sold for, so we offered just a little higher than the recent solds. The owner and the Realtor declined the offer, because there were too many other homes on the market asking for much more.
It's unfortunate because most of the homes in the area, including the subject home were overpriced. My buyer loved the home and we offered exactly what the market said the home was worth. I feel that the homeowner probably missed out on their best offer.
If my logic seems accurate, or if you think I'm off base, either way give me an email at ben.schmidt@me.com or leave your comments here