In our last post, we talked about Chicago’s Near South Side being at an all-time high in 2 years and it was a very good time to sell. This post talks about the 4 things you should tell the home appraiser when selling your home. When a home for sale goes under contract a real estate appraiser is contracted by the buyer’s lender to develop an opinion of market value. Part of this process includes analyzing all agreements of sale, options and current listings of the property.

Let’s dive right into the 4 things you should tell the home appraiser when selling your home:

  1. How was the list price developed?

  Wrong-way to answer this question is being vague. For example, I often hear we used area sales or listings.

  Right-way to answer this question would be to provide the appraiser with specific sales and listings or a copy of the comparative market analysis (CMA) report that you developed.

  1. How many showings did the property have?

  Wrong-way to answer: We had a lot of showings.

  Right-way to answer: We had 15 showings or whatever the number might be.

  1. Were there multiple offers?

  Wrong-way to answer: We had several offers.

  Right-way to answer: We have 2 back up offers.

  1. How was this contract selected over the others?

  Wrong-way to answer: We felt it was the best offer overall.

  Right-way to answer: It was the highest contract price or it was a cash buyer that is able to close in 2 weeks or they had the highest deposit, etc.

These 4 questions is really a way to start the conversation of how we got to the contract price. Being vague here adds zero value to the process. The detailed answers provide a lot of insight when coupled with the appraiser’s analysis of market trends.

Realtors if you’re not meeting the appraiser for the appraisal inspection you are missing your big chance to provide some input that can help make the sale go much smoother.

Watch this video and see what one of Chicago’s top commercial brokers has to say. As an appraiser, I could not agree more.

Tips on getting a property to appraise out when the sales price is above list price.

Posted by ROC Realty Group – a division of @properties Commercial on Saturday, June 4, 2016

 

Do you want to know what is happening in your market? Did I leave anything out or do you want to join the conversation? Let me know in the comments below.

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Thanks for reading,

John Tsiaousis