Appraisal vs. Realtor Comps?

Question

I was going to refi my house and I had an appraisal done 4 months ago. The appraiser appriased my house and 2 acres @ $120K.

Since having it appraised, we've had a death in our immediate family and we have decided to sell. We had it pre-inspected and made other improvements - remodeled bathrooms - new ceramic tile, light fixtures, repainted interior/exterior, new 6x6 deck, landscaping, etc (I watched HGTV to help w/the sale and profit).

The realtor gave me really low comps and I asked her should I have it re-apprased. She said "No, why would you pay for an apprasal when you can get a FREE comparable Market Apprasal from a realtor? She also came back 2 days later w/higher comps - which doesn't set well w/me.

She also stated that a appraisers will fudge their numbers to appease the bank/owner in getting the loan.

Does this sound right? Should I have it re-appraised? Is there a difference btwn a re-fi appraisal and "selling appraisal"?

First time seller - please help

Answer 1

KoolKeyna is right about the Realtor, you should get a new one. She sounds fishy and unlikely to put genuine effort into selling your home. An appraisal can be as low as $250 in some areas. Check the local listings in your area within 1 mile radius in city/suburbs. If your in the country or low population you can go up to 10 miles away. An appraiser bases their estimated price on houses sold in the past 12 months, but you are probably competing in a tough market so price accordingly. To get an even better idea of your value check out the other houses (open houses etc). If a house with the same bedrooms and sq ft (within 100 sq ft +/-) lot size and amenities. Take into consideration any updates you have done compared to theirs. In this new buyers market the seller has to work harder but in can and will pay off. As an avid HGTV watcher you should know that staging is very important. A couple days of deep cleaning and clearing clutter and personal effects (put in storage not the garage) can do wonders for the value and quick sell of a house. In the end though it all comes down to the appraisal done by the buyer's banks appraiser. They're the ones who set the price that the bank is willing to make a loan on.
Good luck.

Answer 2

Sales comps are unofficial figures that an agent will put together to show potential sellers what similar homes in an area are selling for. Although these figures may be close they are not the actual value of the home.

An appraisal will help determine a more "official" value for your home, as an appraiser's sole job is to determine value (as opposed to a realtor who comes up with a "best list price" and goes from there.) You obviously want to list at the best price but the only appraisal that really matters is the one that the buyer's lender does to establish the value of the property (assuming that they are getting a mortgage.)

If you agree on a sale price of $150k, but the lender's appraiser determines that the home is only work $140k the bank will require the buyer to put forward the extra $10k, or the deal will die (these terms are usually laid out in the sales contract.)

So the answer is yes, there is a difference between a re-fi appraisal and a lender's appraisal before settlement. Your agent should be able to come up with an appropriate listing price that is close enough to the actual value to both generate interest in the property, and to actually appraise at contract price when a contract does come in.

You can get an appraisal done if you want a more specific figure, but keep in mind that its not your appraiser's word that is final say, it is the bank appraiser's.

Ironically the way that most appraisers figure a value is similar to the way that agents do (the sales comparison approach, which bases its figures on similar home sales in the area. The other option is the cost approach which is far more complicated.)

Answer 3

A "comp" is a comparable home value indicator that many people of the real estate industry use to get a general idea of the numbers they need to work with when buying or selling a home. In your case an appraisal is in your best interest no matter what the realtor has told you. You will have a better understanding on how the appraiser comes to the final number by contacting one in your area and speaking to them directly. Its odd that you have a realitor SELLING your home and not wanting to have it appraised. You can have your home appraised for X amount, however if you are selling you can sell for whatever price that you like, so this makes no sense. The only reason that I can think of for this to happen is if she has a buyer already that is only willing to pay a certain price for the home. Good luck.

Answer 4

good luck finding a realtor who is honest and actually is working for YOU.

Answer 5

How can a persons'' internet web site comp your resources without searching on the resources? Are on-line comps criminal to apply in a real resources transaction? Do different customers settle for those? you're conscious that genuine resources values boost and shrink in accordance to marketplace situations----availability of similar resources, customers being in a position,prepared, and in a position to purchase.

Answer 6

comparable sales analysis is always lower than an appraisal.
you can call a few appraisers in your area, give them your address, square footage, etc. and they can tell you almost exaclty what they will appraise your house for before they come out.