And stood firm on your listing price against the recommendation of the Real estate agent who suggested a much lower listing price. Good for you…. Or is it?
Obviously sellers want to maximize the value they get for their home; however, their list price might not be reflective of comparable homes in their neighborhood. Most people tend to view their homes emotionally, thus placing an elevated value on them. This is an intangible value that cannot be justified.
Every house on the market has to be sold twice; once to a potential buyer and then to the bank, through the professional real estate appraiser.
All lenders when processing a home loan will require an appraisal (a comprehensive in depth professional evaluation) in order to verify it’s value. There are several factors taken into consideration during the appraisal including the value of properties of similar size and construction, the neighborhood, and even the types of fixtures in the home. The appraiser establishes the “market value”.
If the bank’s appraisal is valued below your agreed upon sales price, the bank might not authorize the mortgage for the full amount the buyer needs to purchase your home.
When your price and the bank’s appraisal are in line, the easier it will be for those looking to buy, and eliminates one of the main stumbling blocks in the buying process.
That’s why it is important to use an experienced real estate professional to help you set the right listing price for your home.
I am passionate about Real Estate and eager to answer all of your real estate questions! Text or Call me at 360-880-2356 or email me directly to ask about Buying, Selling or Investing in today's Real Estate Market - serving Lewis County & Thurston County, WA.
Certified Residential Specialist | Real
Mountain Valley Real Estate