So many people contemplating selling their homes these days are just blown away when their agent tells them they have to sell their house twice. What???
Not only do we have to find a ready buyer who is willing and able to pay a price agreed upon by both parties, BUT the home has to appraise. It doesn't matter if a buyer is willing to pay $315,000 for your home... if they're getting financing (and most are), and it doesn't appraise for $315,000, they will not get the loan. Appraisals take into account active competition but most importantly sold competition, and foreclosures throughout the marketplace have compressed prices to the point that appraisals are getting TIGHT. Appraisers, mortgage lenders, brokers, etc. are all feeling the repercussions of looser lending standards and appraisal guidelines of the past, so if an appraisal falls short, it falls short. Gone are the days of an appraiser pulling a few thousand out of the sky to reach contract price.
So then Mr. Potential Seller says "well if they really like my home they will make up the difference". Possible, but unlikely, especially in today's market. How many of today's buyers (especially buyers with diligent and thorough agents representing them) are going to be willing to pay more for a home than it is worth?? People are uncertain of their futures, and inventory is too high for this to happen.
So, selling to a buyer is one thing, but the REAL test is selling it to the apprasier. Consult your trusted Realtor before you name your price. You may feel as if you are losing $$$, but you will actully be SAVING money in the long run in the form of carrying costs, lost time, and the inability to purchase yourself, by pricing it realistically from the get-go!
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