Pricing Your Richmond VA Home for Sale: Beware of the Appraisal
Posted by Shannon Milligan on Monday, September 16, 2013 at 12:00 AM By Shannon Milligan / September 16, 2013 Comment
The whispers, rumors, and news are all true - the Richmond VA real estate market is on fire! With little inventory, it is prime time for home owners to jump off the fence and list their Richmond VA home for sale. However, just because the market is leaning in the favor of the seller, it doesn't mean one can just pick an inflated price. Allow me to give you an example: As your Richmond VA real estate agent, I conduct a listing presentation armed with statistics on recently sold comparable properties. This is a snap shot of what other houses in your neighborhood have sold for in the last 3-6 months. With these, I formulate a price that I strongly believe will get your home SOLD. On a recent appointment, a prospective seller enjoyed my presentation and could clearly see how I determined the market value of the property. Great! EXCEPT, they wanted me to price the house for more than the suggested amount to take advantage of the lack of inventory. I can understand why the seller would think this is a good idea, yet they forgot one thing: the home has to appraise. What does that mean? When you are pricing your Richmond VA home for sale you must beware of the appraisal. Most Richmond VA home buyers will be obtaining a mortgage to purchase your property. Once under contract, their lender will order an appraisal where a professional appraiser will go to your property and compare it to homes that have recently sold. (Just as I have done in my presentation) The appraiser then submits a report to the lender on what they determine to be fair market value. Now, let's say I went along with the seller and listed the property for $475K when I had determined the value to be $450K. Is it possible we will find a buyer who would want to purchase the home? Sure, every blind squirrel finds a nut form time to time. However, when the appraiser determines the value to be closer to the $450K...Houston, we have a problem. You see, no bank is going to grant a loan for more than the fair market value. A savvy buyer's agent will do their homework for their clients, as I did for my seller, and will likely find what we already know: the house is over-priced. Playing this tricky game will not get you very far. As a matter of fact, it will waste time and cast your property in a negative light. It is well known that the first two to three weeks on the market is the most crucial time to attract the largest amount of buyers. When you select a Richmond VA Realtor to represent you, be skeptical of the agent who is willing to "buy your listing" just to get their sign in your yard to attract buyers for other properties. Make sure you hire the Richmond VA real estate agent who is looking after your best interest and wants to get your home SOLD. Trust me, I want you to get the most money for your property in the least amount of time! For your free listing consultation, contact Shannon Milligan at your RVA Home Team with eXp Realty, today. What's the Value of My Home?