The article in the Milwaukee Journal of 6/29/09 for the home at 4421 N. Glenway in Wauwatosa points out how stingy appraisals of late can affect sales in today's market (http://www.jsonline.com/business/49390682.html). In the article, the subject property's appraisal came in $6,000 less than the sales price. Ultimately seller had to reduce his price in order to close. Seller was with a high commission broker paying probably around $11,500. Had the sellers been wise and used Homeowners Concept, the savings in commissions would have more than covered the deficit from the appraiser.
The National Association of Realtors recently reported that "In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment." Part of these deals are falling apart due to the cost of selling a property when one uses a traditional, high commission broker.
Just like when buyers decide on which home to make an offer on and for how much, appraisers decide the value of the property for the lender regardless of what the seller is paying in commission. Sellers and brokers have absolutely no control what the appraised value is going to be. If you plan to sell, BE WISE and determine from the start that paying a very low commission would only help to net you more money once the value is calculated by the appraiser (which may be less than what you have in mind).
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our house just appraised only $2,000 less than what we sold it for but it $2,000 we needed for the downpayment
ReplyDeleteWe have had 4 underappraisals in the last 2 weeks alone
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