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Replies (1)
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
Yes, you can not always base value on previous sales - Here is my case study =-
Received an appraisal request in mid-late- 2007 for a typical 3/2.0 in Garden Grove, very suburban area.
Bank agent said he needed $550K. to 'make the deal work' Comps (recent sales) showed value around $550K - $575K. Zillow, since it bases Zestimates on sales, showed the same. Everything peach.
But that was right before 'fall off the cliff time' - I looked at very similar active listings, including one next door, and ALL of the listings were $450K - $550K. Nothing was selling, everyone wanted out.
An appraisal is intended to show the bank how much a property would sell for if it was listed for sale and sold by the bank. Though the 'comps' showed $550K, listings were not selling at $450K, hence at that moment the home was not worth $450K. My guess is was worth less..
I appraised the home for $440K, and the bank agent were ballistic. He threatened me to take me off of their list (their bank does not exist anymore), and report me to the OREA for sub-standard work. He had it re-appraised, I believe, just to 'make his deal work'. And he worked FOR the bank, not even a loan agent. I 'killed' his deal, and commission. I dont think I was paid on the appraisal, either.
We all know what happened, dont we ? That homes value went to $325k or so, and per its Zillows chart - stayed there, even to today...
Received an appraisal request in mid-late- 2007 for a typical 3/2.0 in Garden Grove, very suburban area.
Bank agent said he needed $550K. to 'make the deal work' Comps (recent sales) showed value around $550K - $575K. Zillow, since it bases Zestimates on sales, showed the same. Everything peach.
But that was right before 'fall off the cliff time' - I looked at very similar active listings, including one next door, and ALL of the listings were $450K - $550K. Nothing was selling, everyone wanted out.
An appraisal is intended to show the bank how much a property would sell for if it was listed for sale and sold by the bank. Though the 'comps' showed $550K, listings were not selling at $450K, hence at that moment the home was not worth $450K. My guess is was worth less..
I appraised the home for $440K, and the bank agent were ballistic. He threatened me to take me off of their list (their bank does not exist anymore), and report me to the OREA for sub-standard work. He had it re-appraised, I believe, just to 'make his deal work'. And he worked FOR the bank, not even a loan agent. I 'killed' his deal, and commission. I dont think I was paid on the appraisal, either.
We all know what happened, dont we ? That homes value went to $325k or so, and per its Zillows chart - stayed there, even to today...
The Mystery of Selling Your Home, Part I: Price. Case Study, an Overpriced Home lost 85K
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- 5.0/5.0
- (12 reviews)
Contributions:80I had a listing when the market was beginning to crash, from 08-09. It was a cool 60s house in a Dean Martin neighborhood, with underground wires, sound views, and a manicured landscape. Before my stager & I did a not unsubstantial makeover on it, I thought it would sell for 635K.
Well, after a cosmetic facelift & staging (it went from cool retro to Dwell magazine chic), the seller was convinced he could get 750K. However, broker price opinions (listen to these!) were 650-699K. The seller refused to go "that low." Note: he had spent 15K on the facelift, which included interior/exterior paint, French doors off the master, and new stainless countertops.
Surprise: the home sat for 9 months, had a 50K price reduction, and finally closed after an inspection battle at under 615K. Ouch!
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