Appraisal question

coloradomomof5March 19, 2010

Background: We had an appraisal done on our house last year. Interestingly enough, as the housing market prices were going down, our house value was increasing. Two weeks ago we put our house on the market starting at $25,000 less than the appraised value. Our house, unfortunately, is the most expensive one in the neighborhood. So my question-is it fair to price the home near or under the appraisal? The neighbors house is $100,000 less than ours. Should I trust the appraisal and price accordingly? The appraiser said he had to go to another neighborhood nearby to get comps as there was not one in ours that was comparable. Am I stuck?

Here is a link to the house:

http://www.homesight.net/rss/tours/index.php?id=16398">http://www.homesight.net/rss/tours/index.php?id=16398

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pamghatten

That depends on a lot of things:

Is your neighborhood made up of many different styles/valued property ... or is your home the only different one?

What would make someone spend that much more in your neighborhood for your home?

Are the other neighborhoods close?

Have you compared what homes simialr to your in similar neighborhoods are selling for now, not a year ago?

I live in a rural area, neighborhood is not a relative term really ... and the houses are a mix of everything. So it depends ....

    Bookmark   March 19, 2010 at 4:14PM
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coloradomomof5

Our neighborhood is in the country (5 ac. equestrian lots) with ranch and two story houses. Most are around 2800 - 4,000 sq. ft. total. Ours is finished around 5,000 sq. ft. We have unique features in the house besides the size- double staircases, secret room (which I got the idea off the Garden Web 5 years ago when we were building!), gourmet kitchen with all the bells and whistles, extensive landscaping, much more, etc. etc. I put inside and out of this house all that a family would ever want, not thinking we would ever move! The neighborhoods are close, considering there are 1,000 acre farms in between. 1.5 to 3 miles away were the comp neighborhoods/houses. I watch the market closely and have for the last couple of years. I have done a current extensive comparison to other homes in our area-all with 2.5 ac.up. I did not discriminate as to the size. With that, I found ours looks like a great deal. So, does the appraisal count for anything??? We are priced at $674,900 in the Black Forest area of Colorado Springs.

    Bookmark   March 19, 2010 at 4:51PM
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terriks

What does your agent say? She should have a better idea than the appraiser of what homes are selling for right now and how much activity there is in your area.

    Bookmark   March 19, 2010 at 7:03PM
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berniek

You live in my zip code! Anyhow, I think you are priced right for the SQFT and lot size. I looked at the MLS and had no problems with what was shown, the house shows like a model. Last month I sold a model listed at $563k for $525k just south of your home and no acreage. The market for higher end homes just takes longer, however, yours should be gone by the time the weather turns to spring. You have a beautiful- home, hang in there.
p.s. although I'm an active Real-tor, I do not take listings.

    Bookmark   March 19, 2010 at 8:54PM
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mauirealtor

Colomom, I think your strategy so far (price 25K under appraised value) is right on. Your realtor will have to market your home accordingly, specifying its uniqueness in the area. Nevertheless, good luck on your sale.

    Bookmark   March 20, 2010 at 5:39AM
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linda117117

We had an appraisal done on our house last year

Last year as in, December, or last year as in a year ago?

A year old appraisal is useless. Appraisers typically will only go back 6 months to price a house. Either get another appraisal or have your agent do a CMA. Pricing your house $25k under last years appraisal can mean absolutely nothing if home prices have fallen 25% in your area.

    Bookmark   March 20, 2010 at 5:56AM
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coloradomomof5

berniek and mauirealtor, thank-you for the encouragement. I know timing is everything-as well as price!

    Bookmark   March 20, 2010 at 8:29PM
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