{"id":321,"date":"2013-06-05T04:37:06","date_gmt":"2013-06-04T23:37:06","guid":{"rendered":"http:\/\/www.allphoenixareahomes.com\/?p=321"},"modified":"2013-10-26T03:45:11","modified_gmt":"2013-10-25T22:45:11","slug":"how-a-seller-can-lose-value-in-an-overheated-sellers-market-or-oops-i-made-a-mistake-in-selling","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=321","title":{"rendered":"How a Seller Can Lose Value in An Overheated Seller\u00e2\u20ac\u2122s Market (or oops I made a mistake in selling)"},"content":{"rendered":"

After years of the most brutal buyer\u00e2\u20ac\u2122s market the Valley has ever endured, sellers are now enjoying the pendulum \"\"<\/a>swing favoring them.\u00c2\u00a0\u00c2\u00a0 Values are continuing to edge upwards and sellers are frequently receiving multiple contracts \u00e2\u20ac\u201c often within days of offering their home for sale.\u00c2\u00a0 With the real estate market so clearly favoring the seller, it would be easy to assume that sellers are bullet proof.\u00c2\u00a0 Unfortunately this market, like all past strong seller markets, is still fraught with potentially costly seller mistakes. Our hope is by sharing some of these we can protect a seller or two from making the most common mistakes.<\/p>\n

Zestimates or other automated valuation systems.\u00c2\u00a0 <\/strong>While Zillow has done a fabulous job of marketing their automated online valuation system, what they haven\u00e2\u20ac\u2122t done a fabulous job of is being accurate with that valuation.\u00c2\u00a0 Too often would-be sellers jump on to their site (or the multitude of sites that are similar) to determine \u00e2\u20ac\u0153their home\u00e2\u20ac\u2122s value\u00e2\u20ac\u009d.\u00c2\u00a0 Sadly, these systems are no substitute for an appraisal or (even better) the full blown exposure of the home on the open market.\u00c2\u00a0 Ultimately, a home is worth what an arm\u00e2\u20ac\u2122s length buyer will pay.\u00c2\u00a0 In a market that is generating competition for homes, prices can escalate beyond what any automated value system or appraisal says the home is worth.\u00c2\u00a0 Valuation systems use preset computer metrics to estimate the value.\u00c2\u00a0 It is difficult to ever foresee a time when they will be accurate, as determining home values is something of an art.\u00c2\u00a0 Values are composed of market conditions, the property\u00e2\u20ac\u2122s location, features, pricing, accessibility, market exposure (i.e. marketing), and negotiation.\u00c2\u00a0 There is simply no substitute for someone with real estate expertise actually viewing the property.<\/p>\n

Appraisals.\u00c2\u00a0 <\/strong>Speaking of values, let\u00e2\u20ac\u2122s talk about the weakness of appraisals.\u00c2\u00a0 Appraisals are an \u00e2\u20ac\u0153opinion of value for lending purposes\u00e2\u20ac\u009d.\u00c2\u00a0 That is what it is, an opinion<\/span> of value.\u00c2\u00a0 This is so true that homes that obtain more than one appraisal often receive entirely different numbers.\u00c2\u00a0 It isn\u00e2\u20ac\u2122t that appraisers aren\u00e2\u20ac\u2122t attempting to do good work, it is that they are always using rear view mirrors in looking for value.\u00c2\u00a0 Appraisers are required to use sales in the last 3-4 months (it used to be in the last 6-12 months!) \u00c2\u00a0The highest likelihood of an appraisal being accurate, is where the homes are homogenous and supply and demand is in equal balance (a four to six month of supply of homes) for an extensive period of time. Balanced markets in the valley have not been common.\u00c2\u00a0 In a declining market (such as we saw in 2007-2011) appraisals often came in higher than true market value.\u00c2\u00a0 This is due to the fact that the very definition of a declining market is one where a home today is selling for less than yesterday. Conversely, a rising market has tomorrow selling higher than today. \u00c2\u00a0This is the current problem for sellers \u00e2\u20ac\u201c appraisals are often coming in lower than buyers have offered to pay.\u00c2\u00a0 Without addressing these appraisal issues upfront, sellers can find their value being slashed.<\/p>\n

Choosing your agent (friends and family)\u00c2\u00a0 <\/strong>Too often sellers use the first agent they talk to (so the primary hiring criteria is someone simply being there).\u00c2\u00a0 Additionally, sellers may pick an inexperienced agent.\u00c2\u00a0 This does not mean the agent hasn\u00e2\u20ac\u2122t \u00e2\u20ac\u0153been in real estate for years\u00e2\u20ac\u009d but simply they lack experience.\u00c2\u00a0 Did you know the average agent does approximately 6-8 home sales a year?\u00c2\u00a0 Compare that to someone doing over 400 sales a year and you can see experience cannot be measured by the year.\u00c2\u00a0 Another error can be using friends and family.\u00c2\u00a0 It can be difficult for sellers and their family to have the conversations that are necessary to really sell a home.\u00c2\u00a0 Comments on pricing, proper staging, and commissions can result in frayed relationships. Again, finding the agent with both knowledge and marketing power can produce results that outperform an average agent by thousands of dollars, not to mention save relationships.<\/p>\n

\u00e2\u20ac\u0153Saving the commission\u00e2\u20ac\u009d <\/strong>At the risk of sounding self-serving, sellers can sometimes be \u00e2\u20ac\u0153pound wise and penny foolish\u00e2\u20ac\u009d.\u00c2\u00a0 What we mean is that sellers often worry excessively about saving the commission while missing entirely the benefits that commission is really paying for.\u00c2\u00a0 If it doesn\u00e2\u20ac\u2122t matter who sells your home then sellers would always be better served just selling it themselves or paying the part-time agent a small amount to write up the deal.\u00c2\u00a0 This is not the case however.\u00c2\u00a0 If an agent cannot produce results above what a seller can do, you simply have the wrong agent.\u00c2\u00a0 A quality agent can not only counsel sellers on how to prepare the home for market (avoiding the first costly mistake, a badly presented home) but expose the home to the maximum amount of buyers.\u00c2\u00a0 Competition for a home (demand) is the single most important factor in generating the most money for the home.<\/p>\n

As this is a subject near and dear to our hearts, we have plenty more to say on the subject!\u00c2\u00a0 Hopefully, we have given you a thought or two about protecting your home value.\u00c2\u00a0 As always, we are here to help and serve you!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

After years of the most brutal buyer\u00e2\u20ac\u2122s market the Valley has ever endured, sellers are now enjoying the pendulum swing favoring them.\u00c2\u00a0\u00c2\u00a0 Values are continuing to edge upwards and sellers are frequently receiving multiple contracts \u00e2\u20ac\u201c often within days of offering their home for sale.\u00c2\u00a0 With the real estate market so clearly favoring the seller, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-321","post","type-post","status-publish","format-standard","hentry","category-home-values"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=321"}],"version-history":[{"count":6,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/321\/revisions"}],"predecessor-version":[{"id":370,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/321\/revisions\/370"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}