When you’re listing your home or flip for sale, there are a few different angles that you should look at before deciding on the listing amount.
When you’re listing a property for sale, it’s always a good idea to choose a nice round number like $350,000 or $200,000. When homebuyers are looking for homes, they don’t say that they want to buy a home that is $299,999, they’ll say they want to find a house that is $300,000. Real estate is nothing like retail and any price that isn’t a whole number, you could be missing out on a potential sale. Before listing, you’ll want to do a little bit of research and look at comparable homes in your area that’s listed on the MLS. If you list at $299,999, you could be missing people are looking for homes in the $300,000 range. If you find a home that is similar to your listed at $301,000, list your home at $300,000.
What Does the Appraiser Think?
Over-listing your home during a seller’s market might be the go-to idea for a lot of people, but it could also be a big mistake. An appraiser isn’t someone that you can negotiate with to increase the value of your home. When the appraiser comes, he will look at your home from an objective standpoint, he doesn’t have any interest in whether your home sells or not, after all. It’s really important that when you choose your listing price that you think about it and not just assume that the buyer’s appraiser will simply agree with the price you say. For example, if you list your home at $235,000 and you have a contract for $250,000, there is a possibility that your home won’t appraise. The buyer could make up the difference, but they shouldn’t have to. The contract will state that “if at any time” your home does not appraise, the buyer can get their money back in full. Essentially, the buyer can walk away from your house to buy another.
As a seller, you’re going to have to waste a bunch of time while not on the market. A lot of people often believe that the appraiser works behind the scenes with the buyer to give you a lower appraisal. If the prospective buyer uses an FHA loan, the appraisal will remain int the system for about six months. This means that it won’t vanish, and you’re going to have to live with it.
What is My Home Worth?
An appraiser won’t appraise the home until the option period has ended. This timeframe is what the buyer is responsible for paying for. Typically, an appraisal is usually included in the contract sale price, but this doesn’t always happen. An appraiser doesn’t have to chat with the seller to give advice on possible improvements, upgrades, or other ideas that could raise the appraisal value. A good rule of thumb when an appraiser is coming to see your home is not to be there, as it is not in your best interest.