The Importance of the Buyers Appraisal to the Seller
As a future home seller, you may not have considered the appraisal a bank will have, if the potential buyer for your home, is financing their purchase with a mortgage.
The buyer will notify their bank once they have an agreement on your home. The bank will arrange for an appraiser to come out to your home to determine the value. Even if your buyer is qualified in every other way, if the appraisal comes in too low, their mortgage will get denied and there is a high probability that they will withdraw from the sale. The only other options the buyer may have is to either come up with more money to put down or to ask you to lower your price.
Pricing is a crucial part of presenting your home to the market. It doesn’t matter what your home goes under agreement for, if it never goes to the closing table, and the sale doesn’t take place. The initial marketing is important to achieve the optimal outcome and the success of your sales transaction. If your home comes back on the market you run the risk of selling for less than you could have received if you listed it at a proper price from the beginning. A future buyer may offer you less than they would have, if they were making the offer when it first came on the market.
Appraisals can vary to some degree but the appraisers do have to be able to support their price. If it is an appraisal for an FHA mortgage there is the possibility that it will stay in their records for a period of time. This may limit the buyer pool.
If you have a home that is likely to be purchased with financing then the buyer’s appraisal should be considered when you determine the listing price. You can ask whatever price you want for you home, but it doesn’t mean you will be able to sell it for that price. Over pricing can sometimes bring less than the house is actually worth. Strategic pricing plays a large part in the final outcome of a home sale.
Are you confused by the differences between an Appraisal, Assessment and a Market Analysis?
There are many details to consider when selling real estate. We can assist you early in the process. John & Cindy Farrell 978-468-9576.
Download our free copy of “Preparing Your Home To Sell”
Don’t become victim to a rental scam
Renter Beware!
A person has been looking everywhere for an apartment or house to rent. There aren’t any available in the area they’d like to live. When they do find something that suits them, it costs more than they want or are able to pay. Finally, they find something listed online in an ideal location and for a great price. They are excited and want to act quickly to secure it. They may even drive by the provided address to make sure it is truly something they want to pursue. Without hesitation, they provide their personal information, possibly their social security number for a required credit check. They may even wire money as a deposit to further guarantee securing the unit. (more…)
- Published in Frequently Asked Questions
Nails, Picture Hangers and Real Estate Sales
What do we do about the holes in the walls when we take our pictures and decorations down?
Aren’t the sellers going to repair the walls when they take their pictures and decorations down?
These are two questions we are frequently asked, but often very late in the process. Sometimes it happens the week before the closing, throwing a potential obstacle in during the home stretch.
For the Sellers: In the process of getting your home ready to put on the market we recommend editing and staging to make your home look and feel the best it can. This includes removing, organizing, streamlining and cleaning up. Anywhere you have taken things down from the wall repair and repaint. If you are removing things from the walls or windows or ceilings, patch repair and touch up paint.
For the Buyers: When you agree to buy a home you are buying it in the condition that it has been presented to you. It is safe to assume that if there is a painting on the wall there is a nail or picture hook in the wall behind it. In the event you would like the holes repaired and repainted make sure to have an agreement made with the sellers early in the process.
For Both Buyers and Sellers: Make sure your expectations are clear and in writing. The earlier in the process that this is done the less likely there will be problems during the walk through or right before the closing. (more…)
- Published in Frequently Asked Questions, Staging a Home - Preparing to Sell
Seller’s Checklist – What to do Once Your Home has an Accepted Offer
Your Home has an Accepted Offer! Now what?
Once you have an accepted offer you move to the final phase of the selling process. Our clients find it helpful to have a checklist to help make sure things are done in a timely manner and they don’t have to wonder if they have missed anything. All real estate transactions are unique. Although there is a common list of things that need to be done. Leave some space to add items that are particular to your sale. (more…)
Windows – Should you replace or restore them?
John & Cindy Farrell – Coldwell Banker Residential Brokerage
Homeowners are often too quick to decide that if windows aren’t efficient or working, they need to be replaced. We have seen replacement windows that are in need of replacing and original windows that are in great shape, work beautifully and are a significant feature of the home. Here are just a few questions to consider while you are thinking about what to do with the windows in your home. (more…)
- Published in Frequently Asked Questions
Hiring a Home Inspector
Buying a Home on the North Shore of Boston – Questions to Ask when Hiring a Home Inspector
Care should be taken when hiring a home inspector and there are a few questions that should not be overlooked. We have discussed before the importance of having an inspection. Below a a few questions to ask or things to consider when choosing an inspector. (more…)
- Published in Buying Brief - Buying Real Estate
