| Steve Horrillo 2005-07-08, 4:25 am |
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On 5-Jul-2005, "V" <krazygirl@yahoo.com> wrote:
quote:
> Why on earth do I want to price a home $30-$50k over it's comps,
> MIS-LEAD the seller and tell them I can sell it, only for them to get
> upset
> with me 3-5 months down the road when the house doesn't sell -- all the
> while wasting MY time and my brokers money?? Net sheets mean nothing if
> you
> know that the home isn't going to fetch what the seller is wanting to ask.
>
> I find it hard to believe that you're able to sway an appraiser on the
> value
> of a home. I don't know where you live, but around here appraisers have
> all
> sorts of heat on them to be on the level... and very few IF ANY are
> willing
> to fudge a report. That was very common back in the day... and you're
> dating yourself by saying it can be done. Not so much anymore and good
> for
> them!!!
There's no need to pressure an appraiser when you have a good mortgage
broker. There's lenders that will even take BPO's in lieu of comps. As far
as appraisers go, there's plenty who are willing to stretch (not "fudge") a
report. The first thing an Appraiser is taught is appraisal is an art first
and a science second. Appraisers visit realty offices all the time telling
the Agent's they they're on their side. And my experience isn't "dated."
I've trained five appraisers last month alone.
Let me give you an example. I took a listing for a condo for 350k. The
highest comp was 300k. The sellers were getting divorced and needed that 50k
to get on with their lives. If not they were going to default and give it
back to the bank. I had one solid offer at 350k after two months on the
market. It didn't appraise being that the buyer had marginal credit and 10%
down. A month later a couple from South America bought it full price and it
all in cash and it closed in less than two weeks. If that had been you who
got to them they would have a foreclosure on their credit. And you with
nothing to show for it.
I had other cases where the buyers credit was so strong the lender didn't
care about the low appraisal. Yet another I got the lender to accept a BPO.
quote:
>Why on earth do I want to price a home $30-$50k over it's comps,
>MIS-LEAD the seller and tell them I can sell it
If homes didn't sell over their comps there would never have been a housing
boom! I agree that if you don't truly believe you can sell the home over the
comps you see TODAY or 30-60 days BACK and don't have any foresight, you
shouldn't take the listing just to take the listing. But don't judge other's
because of your own lack of confidence or marketing expertise.
I have a custom report set up that averages the Sales Price to List Price
ratio for the past 2 years on any Agent I choose to look up. I then run it
up against their average days on the market and their percentage of
expired's to closed sales. Some average 120% while others average .80%. If
your LP/SP is low you and/or your broker need training. You don't need to be
walking away from listings.
Usually the one's with the highest ratios 1) Give the buyer's agents 3%+ or
what's traditional for the property type. 2) Display plenty of good photos
3) Have their properties on a COMBO lockbox. 4) Give the agents plenty of
description and use phrases like "easy show on combo lockbox" 5) Don't let
the seller put all sorts of contingencies 6) Give good directions to the
property. 7) Enhance their listings using realtor.com's Realtor Tools. 8)
Don't mis-spell street or subdivision names.
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
http://BrokerAgentTraining.com http://over100percent.com http:/HipFSBO.com
http://eLOWn.com
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