I know your home is better than the one that just sold around the corner. And I know that there circumstances forced the sale. Yours is better but…will holding out for a higher price work?
Keep in mind that the appraiser is not always particularly interested in the divorce down the street, or the high end wallpaper you selected. They also may not care that you put in $40,000 worth of hardscape and the other seller had nothing but builder options. The fact is, you may get some concessions for your upgrades – but if you have a similarly constructed home, in a similar neighborhood, similar size – you will have to contend with the fact that it will likely appraise close to recent sales.
Greg Swann just wrote an excellent piece addressing this very conversation. What happens when an appraisal fails to come in at the price offered? Back to the negotiating ‘drawing board’.
Pricing is one of the most critical elements about a successful sale. Price your property to sell and appraise. You may know all the details of those recent sales and the reasons they are ‘low’, but the appraiser will look at the black and white details. Your agent may be able to assist some – but it’s really about the numbers.
If you are rationalizing your price while your agent is telling you to reduce, take a moment to consider if you are at risk being one of the sellers in this type of situation. A home sold overpriced – is unfortunately a home that is not sold at all.
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