By Kay Wilson-Bolton
President, Ventura County Coastal Assn of REALTORS®
December 10, 2000
Opinions of value are just that. REALTORS® do their best to match seller’s price expectations but can only stretch a listing price so far. The “stretch” takes the science out of pricing but is a part of the negotiation that takes place to arrive a fair market value.
More so in a market like this, a home will sell at the listed price which is likely to be some amount over the last sale.
Pricing a home with too much stretch can backfire if all the conditions are not right—the home has been detailed in every respect, the yard is appealing and the neighbors are doing their part in adding value.
Occasionally an owner will feel that obtaining an appraisal will reveal the “true value” of the home. The appraiser’s job is to present value based on a scientific evaluation of the home itself, the comparable listings and sales based on year built, square footage, number of rooms and condition.
It is not unusual for an appraiser to call a REALTOR® friend or the listing agent to ask for details about a recent sale of a property that has gone into escrow.
The questions will be along the line of condition of the interior, concessions that may have been made such as seller-paid closing costs and a description of the seller’s motivation for selling.
This is where science and market sense part company. The nuts and bolts of a sale are known only by the real estate community and this is the added value that the homeowners receive when choosing to work with a REALTOR® in pricing their home.
The appraiser uses their great sources of data to value a home for court purposes or estate that may result in intense scrutiny where there is little room for estimates and subjectivity. The art of appraising is an applied skill that comes from long hours of training and field work.
The real estate community works with many professionals such as these to bring the best of our trade to buyers and sellers. Choosing a real estate professional who wears the blue “R” is your best insurance for top performance and remedy if something goes awry.
When buying or selling your next home, choose a REALTOR®. There is a difference and you can benefit. For more information, contact Randy McCaslin, CEO, Ventura County Coastal Assn of REALTORS® at 981.2100. Our website is http://www.vc-realtors.com