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Q: - "A local real estate agent wants to sell my house. She says she can get $225,000.00. Neighbors are asking about that price for their homes. Is her estimate something I should rely on?"
A: - The subject of Real estate appraisal (REA) verses comparative market analysis (CMA) is one I have argued with brokers over for years. Real estate brokers do CMAs, which means that they look at available records to learn what homes in your neighborhood sold for, and reduce that information to price per square foot. Then, they determine the size of your home and multiply by the average price that the other homes sold for per square foot. Most of the time the broker is quite accurate. A certified appraiser will do something similar but in greater detail. The CMA is free. The REA will cost $350 or more.
Why argue, you ask? Why suggest a REA if it costs more and renders the same information? The answer comes from 30 years of experience dealing with real estate negotiations. When the buyer ask the broker, "how much is the seller asking for the house?" and the broker says $225,000.00 the buyer usually says, "OK, I will offer $210,000.00." The seller is presented with the offer, and usually counters at $220 and the contract price is reached somewhere in the middle. My experience is that if the broker says, "the seller is asking the appraised value" it is difficult for the buyer to argue that the seller is asking too much and should drop the price. REAs come from disinterested experts that have no interest in the sales price. The few hundred dollars spent on the REA gives the seller piece of mind, the buyer has less excuse for "buyers' remorse" and the negotiations are shorter. Get an REA from an appraiser that is a Member of the Appraisers Institute. Pay a little now and save lots in the negotiations.
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.