How to Avoid Low Appraisals When Selling Your Bristow Home
When you are selling your Bristow, VA home at a time when prices are increasing, appraisers can be stingy. They don't like to get overly optimistic since our real estate crash a decade ago. They are very cautious and the result is that many sellers are facing low appraisals. And low appraisals mean sellers are faced with lower their sales price so the buyers can proceed to settlement. Since I studied appraisals for three months as part of getting my broker's license at the end of 2010, the appraisal issues my clients experience can be counted on one hand. That wouldn't be impressive if I only sold ten or fifteen houses since then. Not at all the case.
Since receiving my broker's license, I have listed and sold 95 homes. Three of those had appraisal issues. First was just a tad low and there was nothing to be done. The second appraisal issue I predicted, and we still sold over list price. Finally, the most recent I fought and had overturned within twenty-four hours.
The start of avoiding appraisal issues is knowing how to price a property correctly. My sellers get very accurate price analysis of their homes that doesn't over estimate for improvements. A lot of agents will tell you what you want to hear for value, but then a month down the road, you are crying with a super low appraisal. Starting with a realistic sales price is a must. Not all improvements to your home are going to show up in a higher sales price.
Knowing what information to provide the appraiser is priceless. One thing I learned at the hands of the appraiser who taught us that appraisal module of the broker licensing, was to always give information to the appraiser. It helps them to see why we priced the way we did. To know how many offers were on the home. To have a list of improvements by the year they were done. Floor plans. House location plats. And sometimes just to be able to express why a buyer chose this home over others listed lower. That could be school districts or other desirable location information.
Over the years, I have learned that I must take my cues on how to deliver that information to appraisers by speaking with them. Some like to meet you at the property. Others just want comps emailed. Working with them they way they find most useful helps.
And just because a buyer doesn't have an appraisal contingency doesn't mean that, as a listing agent, I sit back and wait. No way. I don't want my sellers to experience any bumps in the road and buyers with bad feelings about a low appraisal, despite not having an appraisal contingency, create drama. Just this past week, I had that situation. A buyer on my listing had no appraisal contingency and we were reaching for the highest sales price by a decent chunk. This would be a record setting sale. Like always, I did my homework and gave it to the appraiser as they requested. Wouldn't you know, it's another in the column of improbable appraisals that came in at the very optimistic sales price. I don't wait to hear what the appraiser says. I give them reasons why our sales price is right on target.
Just because you know someone with a license doesn't mean they have all the same training and skills as agents like me. In this business, you have to want to better yourself. You have to have a desire to improve your business. That is why I got my broker's license. That is why I view every optimistic sales price as an appraisal challenge. I love bringing values in for my clients. Keep that in mind when you are making your decision on who will hire when you sell your Bristow, VA home.