ATTN: Realtors - Price your homes correctly...

... or this is what may happen. Pricing LOW for a quick sale these days may backfire come appraisal time....
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012 - Los Angeles
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

multiple agents disccussing fixing home prices; the number of anti-trust laws being broken (or bent) is astounding.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 04 2012
I agree that the home must be priced close to appraisal or there will be problems. Unfortunately, most buyers and sellers expect some back and forth negotiations on price and the homes are listed at a price that reflects this. So far I have not had issues with the appraisals personally, but many have.
Good advice Vince.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 04 2012
Here on Cape Cod the bank appraisals are very tight and if the property is not priced correctly it will not go through. 
  The bank owned forclosed or short sale can hurt the values of other homes in the neighborhood.  We had a buyer the other day inquire why he couldn't buy a non distressed house at a below average price when a buddy of his had with a forclosure.  The buyer was subsequently educated as to the process.
   It is very important to price your homes correctly to represent your sellers in the best way.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012
And buyer's agents better be even doubly careful. For instance, many bank owned properties are going on the market at lower than market value prices. Then they have multiple bidders. At least one bank is now including a caveat in the contract that if the appraisal is lower than the sale price, they will NOT renegotiate. So if the buyer happens to offer more than the appraiser says it is worth, they have the choice of paying the extra out of pocket or losing the contract. 

The problem is that when they sign the contract saying they will pay the difference, there is no way to know what that amount might be. If the buyer is trying to bid the most the house is worth to get the contract, they are going to go OVER more times than not. A minor 3% difference on a $300,000 is an extra $9,000 out of pocket.,..or start over and forfeit the hundreds if not thousands you have invested in inspections and appraisal (my personal inspection costs came in around $1,500).

I understand why the banks are implementing this policy, to keep people from overbidding just to get the house and then using the appraisal to renegotiate. However, I feel if they are going to do that, they should have an FHA (or somehow written in stone) appraisal at the beginning. Then if people want to overbid, they know how much has to come out of pocket, as HUDSTORE does it. 

But alas, that would be entirely transparent and fair...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012
Curtis, what a great example!  How true it is that every home should be priced correctly in order to maximize value for the seller, and secondarily the homes around it.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2012
 
Related Questions
Counter Contingency -- what does it mean?
Profile picture for Peter LaMonica
Latest answer by Peter LaMonica
1 hour 55 minutes ago | 5 answers
How do you back out when you've signed everything but the loan contingency?
Profile picture for Peter LaMonica
Latest answer by Peter LaMonica
2 hours ago | 5 answers
Can A Buyer's Agent Who is Also My Business Partner Represent me?
Profile picture for Peter LaMonica
Latest answer by Peter LaMonica
2 hours ago | 10 answers
Are Home Prices in Los Angeles at a stand-still right now?
Profile picture for Peter LaMonica
Latest answer by Peter LaMonica
2 hours ago | 12 answers
Should I withdraw my offer?
Profile picture for Peter LaMonica
Latest answer by Peter LaMonica
2 hours ago | 10 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 530 W 9th St, Long Beach, CA Home For Sale
    530 W 9th St, Long Beach, CA 90813

     For Sale: $669,000

    • Beds: 2
    • Sqft: 3620
    • Baths: 6.0
    • Lot: 4059
  2. 17715 Magnolia Blvd, Encino, CA Home For Sale
    17715 Magnolia Blvd, Encino, CA 91316

     For Sale: $575,000

    • Beds: 3
    • Sqft: 1907
    • Baths: 3.0
    • Lot: 2117
  3. 2973 Hutton Dr, Beverly Hills, CA Home For Sale
    2973 Hutton Dr, Beverly Hills, CA 90210

     For Sale: $2,595,000

    • Beds: 5
    • Sqft: 2424
    • Baths: 3.0
    • Lot: 13068