Welcome to this month's blog, where I want to discuss Appraisals and the recent Market Report. Image courtesy of PixabayAppraisals:One of the most challenging stages of Real Estate
Properly Pricing a Property
Dated: March 13 2021
Another month and another Newsletter comes your way.
Let's briefly talk about Properly Pricing a Property for sale.
As you are likely aware, this market is even hard to put into words! The listing shortage has created a seller's market as I've mentioned for several months now.
Does this drive prices up? Absolutely! Does it mean someone can ask for the moon when listing their property?
Image courtesy of Pixabay
Let's start with the basics:
Image courtesy of Pixabay
- Home buyers have a price range or maximum budget in mind.
If a property is priced too high, buyers who are searching up to a certain dollar value are not going to see it and are not going to consider it since it's above their budget.
Buyers who are looking within that higher price range will notice they're not getting as much for their money. They might throw a low offer out there or ignore it completely.
- Realtors looking at homes will recognize that the listing is overpriced and advise their clients accordingly.
Do Realtors want to ensure their buyers find a home? Yes.
Do they want their clients to pay more than it is worth? No.
As a Listing agent, I encourage a strong yet reasonable listing price and help analyze incoming offers to best meet the needs of the seller.
My job as a buyer's Realtor is to strategize on strengthening an offer without creating a problem for the next point.
- A purchase involving a mortgage will require an Appraisal.
Even if a seller accepts an offer that is very high, the buyer's Lender will require an appraisal.
An appraiser is going to use recent sales in the area to determine whether that property is worth the purchase price.
If the appraised value comes in lower than the agreed-upon purchase price, the deal could terminate if the buyer and seller cannot come to new agreement.
Those points could really fill a novel with scenarios, 'ifs-ands-or-buts' and all sorts of strategizing. Each case is unique!
I'm happy to talk about your individual questions or concerns anytime.
Before you go, here's the February 2021 Real Estate Market Summary
Highlights (the highlights are a comparison between February 2020 and February 2021)
- the median detached home price rose 15.2 percent to $265,000
- the average detached home price increased 16.5 percent to $310,801
- the overall inventory of detached homes for sale decreased 67.3 percent to 617
Please visit the Greater Albuquerque Association of Realtors website links or attachments as follows:
1- Full Length Report on the website - click HERE or view attachment below.
2- Green Sheet Report - click HERE or view attachment below.
The Albuquerque area needs more listings to satisfy the demand of buyers, so if you know of anyone thinking about selling, have them contact me today for a review of their potential equity and options.
Lydia was born in Canada and spent the majority of her years in Calgary, Alberta working as a Physical Therapist. When Lydia and her husband Kevin chose to relocate to the US and the time came to se....