Let's Re-Hash Appraisals.....So Needed In This Sellers Market

Lots of Buyers, not as many Sellers. That's what makes a Sellers market. And, yes, you know it well, we are deep in one right now.

I looked at a home for a client this week. Listed 65k more than the model match that closed in the last 90 days. Model......Match. 1/2 dozen homes away on the same street. Now, the one I saw had a lovely view, great curb appeal, a wee bit of kitchen improvement, but everything else was completely original. Totally, brass light fixtures, marble tub & shower, carpet was worn through, A/C condenser had rust on the top and was a make I haven't seen in years....truly years.....I could go on.

The model match was painted an odd color, had a boatload of wallpaper, not quite as spectacular of a view. But, it did have several areas of upgrades throughout the home, kitchen with new appliances, bathrooms, flooring, plantation shutters. Paid Solar, yes, a completely paid off Solar system. And, lordy, there are a lot of panels up there!!

So, I tell the agent, who indicated that she has now had 3 full price offers (one that was in escrow and cancelled after 2 weeks, the 2nd 'flaked', the third just came yesterday), I just don't see the value and pointed out the MODEL MATCH 1/2 dozen homes away. She said no view...there is a view....and the house was pink! Well, it's salmon colored, but with the interior upgrades AND paid solar panels, I'm calling more value at the sold one than at this new one. She admitted she'll have a tough time with appraiser, but the market is 'much hotter' now. Whatever....

I don't go after expired listings, there's a reason they expired. And, usually that reason is they are priced way too high.

This particular home expired, and this new agent was able to get the home listed at a lesser price...but still too high.

Why are buyers writing full price offers then? Likely to grab the property, then fight with the Sellers about what surely will be a low appraisal.  There is absolutely no way in you-know-where that this appraisal is going to come in at list price. No freaking way.

So, you would-be sellers that want to list your house crazy higher compared to recent sales? List it appropriately, where you won't have an appraisal problem....and, then, let the Buyers drive up the price. Wanna know why? Because, that is manageable. That is something that can be negotiated right up front instead of waiting for what will likely be a huge, and very disappointing, problem in escrow. One, that can likely cause a cancellation 2 weeks in.....just sayin'.....

(Nope, not one of my upset peeps.....from Getty Photos!)

Questions about So Cal Real Estate? Just Holler! 

Lauren@KeepYourWitz.com or (661) 313-5470