Dallas Home Appraisals News and Information

As we drive around our own neighborhood we are seeing a lot of homes for sale, many for sale by owner.  Some are selling pretty quickly, in under 3 months.  These are generally the ones that are either priced realistically, and have sold for near 100% of the asking price, or priced to sell quickly.

For the homes that have lingered on the market, we can see in the MLS listings that by and large they are overpriced for the current market.  Even those represented by realtors are asking more than their home is likely to be appraised for, sometimes because the homeowner is unrealistic about the current market or - more likely - not well informed about what other truly comparable homes have sold for in the past 6 months.

In the current climate, with foreclosures rising and sales stalling, lenders are asking appraisers for comparable sales from within the past 6 months.  Additionally, appraisers are required to use comparable sales from within your home's "competitive market area", a definition which often varies between realtors and appraisers. Often, the sales that come up when your realtor runs a Comparative Market Analysis are not the sales that an appraiser will use to form an opinion of market value.  Especially if any of those sales are across a major road or differ in influence from your home (one or the other may back a park, a creek, retail or power lines, all of which make a difference).

The absolute best way to know how to price your home is to have a pre-listing appraisal done.  This will not only give you the information you need to know that you are pricing your home correctly - not too high to sell but not too low to feel good about - but will also let potential buyers know that your asking price is solid and based on current market conditions in your neighborhood.

Another area in which sellers can short-change themselves is by relying on tax records for square footage.  If you are not certain of your square footage, or if you have made any additions or alterations to your home, it might be worthwhile to have it professionally measured by an appraiser (you can do this without getting a full appraisal).  Also check to be sure that any additions can actually be counted toward square footage in an appraisal; we have run into many instances where a seller or realtor has counted a garage conversion as square footage only to find that because the room has not been ducted for heat or air it will not be counted for the purposes of the appraisal.

Contact us at Blue Star Appraisals with any questions about whether a pre-listing appraisal or measurement is right for you.  Sometimes spending a little money before you list will result in making more money when you sell or, at the very least, will give you the peace of mind you need when making important decisions regarding what is perhaps your greatest investment.