I just came from a company sales meeting where the topic of the day was "Appraisers" and their Bad appraisals of late. Seems like everyone wants to blame the appraiser because so many homes are going into foreclosure and then selling later for a lower then actual market value price.
The appraisers didn't create the situation our country is in today related to the Real Estate market. I'm not sure any one thing caused the problem. I suppose we are all a little bit responsible for where we are today.
The thing I think everyone at our sales meeting finally realized is that if you want to sell a listing today you darn sure better know what the potential market value actually is TODAY. Not what it would have been valued a year ago.
Then as the listing agent you need to sit down and explain to your potential listing client what the market is doing today. Be sure they understand that today and yesterday (a few months back) are two different things. What it could have brought in the market months back isn't what it will probably bring today. Even if you could get an offer for yesterdays value it may not appraise in the end.
When the appraisal comes back low you run the risk of scaring away the buyer. If you haven't informed your seller before hand properly you will no doubt just make them mad and have them question your ability as a REALTOR. None of these situations are good for anyone involved.
Bottom line is we need to help our sellers understand before hand what the market id doing and be certain they understand how that might effect their individual sale.
You are so right. I myself have a house in Florida that was originally listed for $627,000. Three years later it, like so many homes in Florida. is still for sale in a moribund market. Today's price is $269,900. What the home is worth and what it will sell for are two different things and that's a hard pill to swallow for any seller!
Bob - It is all about upfront education. I is also important to constantly give sellers the most recent market report. A few months ago is now not a good comp.
It is a hard pill to swallow, but as stagers we have experienced the Realtor who is honest with their sellers, and sets a reasonable price, selling, and the Realtor who is willing to "try" at the higher price having the property sit. There is a lot that staging can do, but overcoming overpricing is not one of those things!