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How do you arrive at\u00a0the right listing<\/a>\u00a0price for your Michigan home?\u00a0 It is a fine line between listing it too high and the right price.\u00a0 If you list it too high your home will just sit without any offer<\/a>.\u00a0 Then you will have to lower the list price, but then you will have missed\u00a0out on the hottest buyers.\u00a0 They are not coming back to see your house after you have lowered the price.\u00a0 They have already formed an opinion that the house is over priced and not for them.\u00a0 It is rare for a buyer to come through a second time.\u00a0\u00a0The goal is to list your home<\/a> at the right price the first time.\u00a0 Once in a while I have a client ask \u201cshould I order an appraisal<\/strong>\u201d before I list my Michigan home.\u00a0 Hello, this is Russ Ravary with another addition of Michigan home selling tips<\/a>.\u00a0 First of all let me explain what an appraisal is when you have an appraisal done by a licensed state appraiser.<\/p>\n An appraisal is one appraiser\u2019s opinion of the value of your\u00a0Michigan home.\u00a0 It doesn’t matter if it is a home in Garden City or a lake home in Oakland County Michigan\u00a0they all use the same universal appraisal form.\u00a0 Every appraisal on a home is different because it is one appraisers opinion and they may have arrived at the value using different comparables than another appraiser did.\u00a0 It would be rare that different appraisers will give the exact same value for a home.\u00a0 If you hired three different appraisers you most likely would get three different values for your home.\u00a0 It is just their opinion of value based on their research.\u00a0 They may use different sold homes as comparables.\u00a0 On an $800,000 home we had 3 different appraisers give appraisals varying form $650,000 to $795,000.\u00a0 3 widely varied appraisals.<\/p>\n Here is basically\u00a0how a licensed appraiser\u00a0does their appraisal.\u00a0 The appraiser usually looks for sold homes in the area that sold in the last\u00a06 months, with the similar style, and close to your lake home.\u00a0\u00a0 They like to look at lake homes that are on the same lake and will not use homes off the lake.\u00a0 So if your lake houseis a colonial the appraiser is going to look for other sold colonial lake homes in your area.\u00a0 An appraiser is going to make comparisons and adjustments based on these factors and some other ones.\u00a0 The major ones they look at is:<\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n The appraiser is trying to compare apples to apples.\u00a0 They care about the structure, size, and numbers.\u00a0 They really do not make adjustments for\u00a0how nice or how neglected the home is.\u00a0 Or if they do it will be a small adjustment.\u00a0 It is no where near what a real estate<\/a> agent would adjust for.\u00a0 The appraiser comes up with a figure of what they feel your home is based on the basic elements of the home.\u00a0 They do not figure in the co<\/span>ndition in most cases.\u00a0\u00a0The appraiser is looking at more at the numbers of the house and basic structure, and not condition.\u00a0 Their major adjustments would be for square foot, differences in number of bedrooms, bathrooms, and garage sizes from the subject house versus the sold house.<\/p>\n Home appraisal<\/a><\/p>\n<\/div>\n<\/div>\n So the difference is that a realtor\u2019s market analysis (CMA) or value opinion takes into a bigger account the condition of the home where an appraisal does not.\u00a0 In the last 10 years a Michigan homes condition has a HUGE impact on the sales price or value of a\u00a0home.\u00a0\u00a0 A fixer upper is not very desirable and the sold prices reflect that.\u00a0\u00a0A 1200 square foot home that needs updating you will see a $10,000 to $30,000 difference\u00a0between what the top updated move in ready homes<\/a> sell for and\u00a0what a fixer upper sellers for.<\/p>\n As the\u00a0square footage of the\u00a0homes get bigger sometimes the spread between fixer uppers and move in ready homes is even more.\u00a0 I have seen homes that just needed a paint<\/a> job sell for a $10,000 less.\u00a0 So the condition of a\u00a0home impacts the value the buyer puts on it and the\u00a0price the home sells at.\u00a0\u00a0 So sure a house can appraise for a number, but it may never sell for that price because of the condition.\u00a0\u00a0If an appraiser is not taking into account how nice the home is or isn\u2019t then the appraisal is not a true indicator of what your home is worth.\u00a0 Yes, it does tell you\u00a0what they feel it is worth and what a bank would loan<\/a> on it, however it is not a indicator of what a buyer would pay for it especially if the home needs work or is in excellent condition.\u00a0 Sometimes buyers will over pay for an updated move in ready Michigan home.<\/p>\n So yes you can pay and have an appraiser do an appraisal but it is not a true indication of the market value or what a buyer would pay for it.\u00a0 Use it as a guide and also listen to what the real estate<\/a> agent says the home is worth.\u00a0 After all it is all about what a buyer is willing to pay for it.\u00a0\u00a0I hope this edition of Russ Ravary\u2019s Michigan home selling<\/a> tips helps you understand the home selling process<\/a> better.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"\n
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