"I
recently sold my house myself through the use of an on line
service. Initially, I had contacted a friend in real estate
who gave me an estimated market value based on recent sales
in the area and estimated square footage. I factored in what
I understood my neighbor had received for his similar house
and what I understood the house across the street had sold
for 16 months earlier. I was comfortable listing my house at
$239,000. After 2 months I had several inquiries, a few
lookers, but no 2
nd visits and no offers.
I then
decided to get a professional appraisal. From this I learned
that my neighbor’s house had sold for $10K less than I had
been led to believe. I also found that my finished basement
did qualify as gross living space. My formal appraisal came
in $14K below what I was asking. Given this information, I
lowered my asking price by $10K. This made my price much
more attractive and still provided me with room for
negotiation. I immediately experienced increased activity.
My house sold less than 3 weeks after I received the
appraisal.
Since most
sales contracts include a clause releasing the buyer from
the contract if the house does not appraise for the sales
price, it serves no one’s purpose to list a house
significantly above the appraised value. I was able to list
my house with the confidence that my sales contract would
not be in jeopardy. I was also able to provide the appraisal
to the buyer who was then able to receive a fast appraisal
at half the normal cost."
Dave M.