It is difficult to have this conversation with a client who has poured their heart and sole into fixing up or maintaining their home to a certain standard. To tell them that basically their home will be looked at just as the home down the street that doesn't have flower beds or crown molding can be devastating to many homeowner's who made those improvements just for the reason of increasing value.
The following post by Tony Grego puts it into perspective when he says this is a lender driven market. Anyone involved in real estate at this point knows exactly what Tony is talking about.
Do you feel that pricing a home is a little like throwing darts these days? Sometimes you hit, most times
you miss?
At the end of the day Realtors have a next to impossible job trying to help clients price their home. I don't think I ever met anyone that wants to lose money but most homes we price today should reflect a lower price than a few years ago. Now I'm on the mortgage side of things but I hear the same things. My house is worth XXX,XXX due to:
"I have nicer landscaping."
"I just replaced the carpets."
"I just repainted the walls."
"I just had the bathroom toilet fixed."
"I had my furnace replaced last year."
Realtors work very hard with comparables, pictures and stats to help support the price. I'm not saying that these upgrades are not important. They just don't really add value. They add eye and curb appeal to help a potential client say yes to the listing.
What goes into a Lender's Appraisal?
For Fannie Mae, Click here
For Freddie Mac, Click here
For FHA, Click here
Most homes are financed. So these appraisal standards are important when you price. Remember we are in a Lender's Market. Nothing will turn a buyer off more than working hard on a price agreement only to find out the appraisal comes in short. So to best serve our clients remember that most of the weight for your pricing strategy must be Lender comps.
At your service,
Tony Grego
Senior Mortgage Banker American Bank - Indianapolis, IN Branch
www.getmyratequote.com
www.tonygrego.com to learn more about me317-348-0280 direct line
317-536-3754 fax
"Bankers with vision, helping people with dreams!"
DelNorteCountyREOForSale.com & REOAgent95531.com
Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009 and 2010--*both in number and volume--than Fran Gatti. Put Fran to work for you!
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*PER CCMLS
Isn't that the truth Fran. Some homeowners have a difficult time with this reality...great article!
This is well written and educational. The links you provided are great resources for our clients.
Thanks for the re-blog and spreading the message
Tony