{"id":3288,"date":"2008-06-28T10:52:43","date_gmt":"2008-06-28T17:52:43","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3288"},"modified":"2008-06-28T10:52:48","modified_gmt":"2008-06-28T17:52:48","slug":"you-probably-wont-sell-your-home-for-an-above-market-price-but-even-if-you-do-the-home-still-has-to-appraise-for-that-price","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3288\/you-probably-wont-sell-your-home-for-an-above-market-price-but-even-if-you-do-the-home-still-has-to-appraise-for-that-price\/","title":{"rendered":"You probably won’t sell your home for an above-market price, but even if you do, the home still has to appraise for that price"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
You probably won’t sell your home for an above-market price, but even if you do, the home still has to appraise for that price<\/strong><\/p>\n

So your house is finally under contract. Congratulations. It took longer than you thought it would to sell, and you had to go through three price reductions before you got regular showings. But now you’re under contract and in escrow. You’ve made it through the inspections and you’ve taken care of all of the repairs. Nothing but smooth sailing from here, right?<\/p>\n

Not quite.<\/p>\n

Here comes some bad news you hadn’t anticipated: Your house didn’t appraise.<\/p>\n

A lender will only lend on the appraised value or the purchase price — whichever is lower. If the appraisal comes in lower than the purchase price, something has to give.<\/p>\n

If there’s an appraisal contingency in the contract — and there almost always is — the buyers can cancel the contract unilaterally.<\/p>\n

More likely, they’re going to want you to lower your price instead.<\/p>\n

If you don’t, you’re almost certainly killing that contract. The lender will not underwrite the loan, so the buyers will be forced to cancel using the financing contingency.<\/p>\n

You could end up waiting quite a while longer for another buyer. And that buyer could offer you quite a bit less for your home. And even then, your house will still<\/em> have to appraise for the purchase price. If home values continue to decline, you could live through this same nightmare a second time.<\/p>\n

So does that mean you should cave on the appraisal no matter what? Not necessarily — depending on your objectives. If you need to move now, take your punishment and move on. But if you can afford to wait long enough for the market to recover, that might be the better option.<\/p>\n

Appraisers and loan underwriters are skittish right now. Lenders are taking back homes and selling them for fifty cents on the dollar. Appraisers are being fastidious to make sure they are not overestimating values.<\/p>\n

And all of this is just another reason to price your home to the market. You Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  You probably won’t sell your home for an above-market price, but even if you do, the home still has to appraise for that price So your house is finally under contract. Congratulations. It took longer than you thought it would to sell, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":{"0":"post-3288","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":9206,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9206\/now-could-be-a-good-time-to-buy-a-top-notch-home\/","url_meta":{"origin":3288,"position":0},"title":"Now Could Be A Good Time To Buy A Top-Notch Home","author":"Doug Quance","date":"July 17, 2009","format":false,"excerpt":"Some Well-Maintained & Updated Homes Are Better Values Than Foreclosures When all of the comparable homes in an area are foreclosures and short sales, you could get a really good deal on the nicer, well-maintained and updated homes. A broker recently called me regarding one of her listings. It's a\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3043,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3043\/sure-jonathan-miller-can-appraise-homes-but-can-he-cook\/","url_meta":{"origin":3288,"position":1},"title":"Sure, Jonathan Miller Can Value Your Home, But Can He Cook?","author":"Dan Green","date":"May 1, 2008","format":false,"excerpt":"I think these photos explain why none of us have\u00a0never seen Jonathan Miller\u00a0and Bobby Flay\u00a0in the same room at the same time. (Images courtesy: Business Week, Culinary Schools)","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7529\/there-are-no-second-acts-in-american-real-estate-listings-its-priced-right-prepared-right-presented-right-and-the-house-still-wont-sell-what-do-you-do-now\/","url_meta":{"origin":3288,"position":2},"title":"There are no second acts in American real estate listings: It’s priced right, prepared right, presented right — and the house still won’t sell. What do you do now?","author":"Greg Swann","date":"March 20, 2009","format":false,"excerpt":"Barry Bevis in Tallahassee is looking for help. And he's willing to pay for it. He has a listing that he's having trouble moving, and he's looking for marketing ideas to draw the attention of a buyer. Here's Barry's note:I have a great listing that just won't sell... I've given\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2618,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2618\/down-payment-assistance-is-another-creative-financing-option-you-can-deploy-to-make-sure-yours-is-the-home-that-sells\/","url_meta":{"origin":3288,"position":3},"title":"Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells","author":"Greg Swann","date":"February 19, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells It's a hard world for home sellers right now. It's possible that things are slowly getting better,\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9047,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9047\/hoarding-listings\/","url_meta":{"origin":3288,"position":4},"title":"Hoarding Listings?","author":"Glenn Kelman","date":"June 29, 2009","format":false,"excerpt":"Has anyone noticed listing agents hoarding REO inventory for their own clients? In California, where we now have only 4.2 months of inventory, we have begun to see bank-owned listings marked as contingent within only a minute of being listed, only to return to the market a month later and\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1032,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1032\/dom-trickery\/","url_meta":{"origin":3288,"position":5},"title":"DOM Trickery","author":"Allen Butler","date":"February 11, 2007","format":false,"excerpt":"Recently, there have been discussions about the ethics of agents who attempt to manipulate Days On Market in an attempt to remove stigma from a property. This discussion over on Active Rain really got me thinking, and I wanted to get the pulse of people's feelings concerning this issue. Indulge\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3288"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3288\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}