PRE-LISTING APPRAISALS FOR REALTORS & SELLERS
Every year, the top 20% of all Realtors close nearly 80% of all real estate sales!!
These “superstar” salespeople have a secret weapon that helps them close more sales. Their secret to success is that they AVOID overpriced listings!
Top producers encourage sellers to obtain a “pre-listing” appraisal to determine a property’s value – and correct square footage – before it is listed in the MLS. As you may know, most showings for any home will take place during its first 45 days on the market – when it’s an exciting, new listing! So, it’s critical that the asking price be razor sharp to the actual value right from the start!
Your listings will be more competitively priced than most other properties! A pre-listing appraisal will pinpoint the most probable selling price, will identify any condition problems that might add friction to the marketing process and will determine the actual living area of the home – plus will help your transaction survive the mortgage appraisal process.
Top producers leave several copies of the appraisal at each listing so buyers can learn the actual value of the property. This prevents most “low ball” offers. Buyers can look at the appraisal floor plan and photographs to help them remember your listing – much more than other homes they just walk through.
I started selling real estate in 1977 with Sterling Realtors, in the Park Cities, so I’ve had the opportunity to help many people market their homes! After six years of appraising part time and selling part time, I decided to appraise real estate full time in 1983 and I’ve worked with thousands of Realtors and homeowners over the last four decades. We have also received many awards for appraisal accuracy from national relocation companies!
For more than forty-one years, I have observed under-trained Realtors trying to sell over-priced real estate to unqualified buyers! Nothing could be more frustrating for a truly motivated seller.
Let’s face it – many agents will accept a listing at almost any price demanded by the seller. Later, price reductions are suggested because the market “didn’t respond.” After months of frustration, most sellers get angry and seek out a top producing agent who can get results!
Many top producers are often the second or third listing agent when the sale is finally closed!
Superstar closers also encourage “pre-listing” appraisals to determine if a seller is really serious!
If a seller refuses to pay for an appraisal, he or she will probably refuse to pay for needed repairs to optimize marketability.
Top producing agents decline such listings since it appears that the seller isn’t motivated or is merely trying to “test the market.”
By the way, higher asking prices don’t necessarily equate to higher selling prices!
Price per foot tends to under price the best properties and overprice most others in a neighborhood. Even if a buyer can be convinced to pay too much, the sale will fall through when the mortgage appraiser reports the actual value to the lender. Overpriced properties quickly become “shop worn” and the eventual selling price is often much lower than it would have been if it had been properly valued from the start. Don’t let this happen to you – insist on a pre-listing appraisal every time!! At least allow us to measure each listing so your CMA has accurate home size data. An extra one hundred square feet could mean $20,000 or more!
As soon as the “for sale” sign is planted in the yard, the property is no longer the seller’s home. It is simply another house for sale in competition with others on the market. Sellers must do everything to “showcase” their property for the next owner. These days, “allowances” for repairs or updating don’t work. Homes in great shape will sell for much higher prices and in less time.
Sellers should eliminate clutter, store excess items in an offsite storage facility and consider boarding pets elsewhere. The décor of the home should be made neutral. A professional landscape company should manicure the outside of the property and the interior of the home should be cleaned & “detailed” by a company specializing in new home make ready for builders.
The first step is learning the actual value of what is offered for sale. Since the local tax office is usually wrong about the actual square footage of most homes, the appraisal will determine the home’s correct living area. An experienced appraiser can also estimate the increase in value when condition problems are corrected. An accurate appraisal will also confirm a home’s value for reluctant buyers. I welcome the opportunity to correctly appraise your each of your listing!
Warmest regards,
Lyle F. Gallagher, Certified General Appraiser