how much above appraised value can I sell my house for? what is the norm?

Question

My house was appraised at 233,000.00 in March of 2006 and now in Nov. of 2006 was reappraised at 204,000.00 in Port St. Lucie, FL 34952 it does have 3 bedrooms and 2 baths and a 14 x 30 screend in pool on a city lot I just can't believe the value has dropped 29000.00 in 9 months so my husband and I are asking 219,000.00 is this a fair price? My realtor keeps wanting me to drop the price.

Answer 1

Appraised value is not important, except to indicate how much a bank might potentially loan. Nor is the zestimate off of zillow. As a buyer's specialist, if I see either number in a listing, I know that person is in denial about the changes in the market, and I don't waste my time - or my buyer's - with them.

What is important is the actual sale prices of comparable homes that are actually selling. Right now, in most of the country, those values are well below appraised value. If you want to list that property, by all means you are allowed to choose your list price. If you want to actually sell it, price it correctly in the first place. Especially if you want to sell for a good price.

Putting it on the market for too much and then dropping the price if it doesn't sell is a good way to sit on the market for too long, get desperate, and be forced to accept an even worse offer, setting you up for real estate sharks.

This is not to say that your Realtor is necessarily doing a good job. One of the standard tricks to getting a listing is say that you can get more than anyone else, list it too high, then start pressuring the folks to drop the price. See above for what happens.

If you price the home correctly in the first place, you greatly increase the probability of getting a good offer in the first few days it's on the market - which is your time of best and highest interest.

One last thing: We are entering the worst time of year for sellers and best for buyers. If your Realtor hasn't explained this to you before now, dump them when your contract expires.

Answer 2

If you're talking tax appraisals, they don't always have a lot to do with a reasonable selling price, can be considerably higher or lower. If you're talking a bank appraisal, they're probably closer but still can be out of date quickly as the housing market changes.

A reasonable selling price for a house depends on what comparable properties are selling for. Realtors have easy access to that information. The housing market in Florida, and in many other places, has dropped some recently, so if you need to sell, you might have to sell for less than you might have gotten a year or so ago. If you've had it up for sale for awhile, and it hasn't sold yet while other properties around you are selling, then you do probably need to drop the price, or just take it off the market.

Good luck.

Answer 3

The real estate market is slowing and a lot of homes are dropping in price. Florida has been hit especially hard with falling prices and foreclosures.

A $29,000 dropin nine months seems a little excessive, though. Two questions come to mind:

1) Was the original appraisal inflated at all? If your bank did the appraisal, chances are, it may have been inflated to be able to give you a higher loan amount.

2) Was the recent appraisal inadequate? Maybe a different appraiser would give a different, higher value, and the one you used was just incompetent.

But if the home is appraised for $204,000, no one in their right mind would pay $15,000 more than the house is worth to purchase it. Price gouging only works at the gas station and at public events like concerts where bottles of water go for $4.00 each.

So you may want to consider holding onto the house a little longer until home values rise again, or lower your asking price. But if you can find an idiot to buy it for $219,000, then great job. There are more than enough of them out there, that's for sure.

Good luck,

ForeclosureFish
http://www.foreclosurefish.com/

Answer 4

In theory, you can sell your house for however much you want. The problem is the potential buyer convincing their lender to loan them that amount. Most lenders won't lend above appraised value, even with mortgage insurance. The buyer has to be willing (and able) to come up with the difference out of their own pocket. So, let's talk numbers. If your house appraised at $204,000 and you were asking $219,000 for it, the potential buyer dealing with most conventional lenders would have to come up with $40,800 down payment (20% of 204k) plust the extra $15,000 you are asking above appraised value. This is probably why your agent is suggesting you drop your asking price. I'm not familiar with your market, but ask yourself this question: Would YOU want to give more money for something than it's worth?

These people have you and me, the common "Joe's", by the backside. The market usually sets the price and you and I can't do much about it. Kinda stinks. If you can drop the price and make some money to put down on another home, I'd do it. The odds are values will keep dropping before they come back up.

Answer 5

An appraisal is an estimate of market value. They research properties that have recently sold in the neighborhood. As an appraiser most properties sell close to appraised value under normal market conditions, meaning it has spent a significant time on the market and there is no pressure on either parties to buy or sell. If the market you are in is paying 209k why would a consumer pay more than that? Also, if your realtor is saying to lower your price that is a good indication that you are overpriced. Overpriced properties are bad and most buyers won't even consider looking at he property. It shows that the owner is unrealistic and not motivated to sell the property. If you price it right you have a better chance of getting multiple offers.

Answer 6

Your realtor has a good idea of what the market is doing, and so do the appraisers. While real estate is less likely to lose you money than other investments, it is still a risk. I'm from Virginia, and our real estate market was just getting over a boom in spring of 2006, and a lot of people's houses lost value after that--demand was high then, but now it isn't so it is more of a buyers market.

If you have to sell now, you should probably drop the asking price and/or be willing to make concessions to anyone interested in it, like covering closing costs. If you don't have to sell, hang onto it until the market gets better.

Answer 7

If Dad owns the house he can sell it for any amount he wishes (assuming this is not a case of something like a divorce situation where the court orders the house to be sold and the proceeds split). Dad could sell the house for a dollar if he wanted to. There's nothing illegal about it. With that said, if Dad doesn't want to sell the house for less than the appraised value then he doesn't have to. And based on your question, it rather sounds like you're trying to convince him to sell you the house for less than it’s worth? Just pay the man the value. That's the fair thing to do.

Answer 8

There is no limit to what you are allowed to sell your house for. Fair price is what the market will bear. In recent hot markets there were bidding wars that went well above listing price but in the current market this is not so.

Financing is based on appraised value.

Here is some additional info. Hope this helps.

Answer 9

A refinance appraisal is usually higher than the value you could sell your house for.

I'd listen to your Realtor, they are typically trying to get you to list your home TOO HIGH, so if they are telling you to lower the price, it's gotta be too high. You can try http://www.zillow.com and plug in your address, it'll give you some comparable properties (don't use the value Zillow gives you for your home, just look at the comparable sales) - see what the other houses in your area are selling for.

Answer 10

You have to understand that appraisal's are based on what the call "Comps" or comparing your property to property similiar to yours (bedrooms/ baths, Sq. feet, Etc...) that has sold within a reasonable distance from yours. they compare them to see what the value is. By the way I also live in Port St. Lucie, and the property value's just dropped like a rock, right after this years taxes were calulated, raising everyone's taxes on over assed homes.