NA Private sale of house - advice?

[Lindberg]

I have found appraisals to be near useless.

In comparison to what? There was a suggestion to get a real-estate agent just to run comps. That's got to be the least cost-effective and most useless option.

Currently arguing with the bank about a garbage appraisal that used homes 500sf smaller and located at the far end of the county. Dodd Frank has turned appraisals into a commodity and the appraisers often come from out of state and have no clue about the local market.

On our last mortgage, the bank wound up with 3 appraisals, and more than 20% difference among them. The best one, IMO, was when I convinced them to go with a local appraiser. But if you are doing it yourself, you don't have such problems because you can hire the appraiser of your choice and you aren't constrained by Dodd-Frank or Fannie or Freddie or anything else.

There is something called a 'certified brokers opinion' (or something to that effect). One of those provided by a broker local to the property is going to be more valuable than an appraisal from a Dodd Frank castrated appraiser.

Why would a broker be better at valuing properties in a vacuum than an appraiser? I've seen a real-estate agent around here who guarantees that he'll sell your house within x days or he'll buy it for the asking price. To get that deal, you have to set your asking price at whatever he suggests, which, dontcha know, is going to be less than market. It's a win-win for him, and a lose-lose for his clients. Whether they're as brazen about it as this guy, most agents will do the same thing, consciously or unconsciously. Since they get paid on the sale, they want to price your house at what it will sell for quickly.

 

[coloradobluesky]

Realtors will try and get you to set a low price on your house because it's easier to sell. That's for sure.

 

[UngaWunga]

Realtors will try and get you to set a low price on your house because it's easier to sell. That's for sure.

Bingo. Realtors make money from transactions. They want a large number of transactions. Getting your house sold asap is in their best interest. Getting the best price, if it takes time, is not.

You can do the transaction without a realtor. Skip giving a middleman 5-10% if you don't need to. And you don't need to. Do the signing in a titling company office. They'll know what to do.

 

[JoseCuervo]

Bingo. Realtors make money from transactions. They want a large number of transactions. Getting your house sold asap is in their best interest. Getting the best price, if it takes time, is not.

You can do the transaction without a realtor. Skip giving a middleman 5-10% if you don't need to. And you don't need to. Do the signing in a titling company office. They'll know what to do.

Realtors serve a role, and, like any professional you hire/engage, it is your responsibility to "manage" them. Just like your attorney, your Dr, etc. And that takes quite a bit of knowledge and effort.

I know lots of realtors, and, I would only hire about 20% of them to list a property for me. The other 80% are only useful for attempts at buying property, if you direct them to do the leg work.

Not always, but frequently, there are a couple of "Alpha Females" in the local real estate industry. Women who have some grey hair, been doing it awhile. Sometimes they make things happen.

 

[flyingron]

I've bought and sold houses over the years. Sometimes I've used agents. Sometimes not. Depends on whether I need the assistance or not. In NJ, I almost always had a lawyer involved anyhow (it's common for them to do the closings). In Virginia, I used the title companies attorney.

 

[coloradobluesky]

Realtors have the buyers in their car.

One problem with selling your house without a realtor is the buyers tend to be unqualified. Realtors qualify the buyers and dont waste time showing them what they cant afford.

AS a seller you have the right to know your potential buyers financial statement and talk to their banker and see f they qualify for a loan that size. You have that right because you need to know. You also have an obligation to keep that info confidential and not use it agaisnt them.

 

[weilke]

In comparison to what? There was a suggestion to get a real-estate agent just to run comps. That's got to be the least cost-effective and most useless option.

In comparison to a Brokers Price Opinion. You dont hire an agent to represent you, you just hire the brokers professional service to come up with a valuation for the home.

On our last mortgage, the bank wound up with 3 appraisals, and more than 20% difference among them. The best one, IMO, was when I convinced them to go with a local appraiser.

You are making my point.

Why would a broker be better at valuing properties in a vacuum than an appraiser?

Because he knows the local market, has possibly represented either side in the comps and knows more than the appraiser who just knows what comes off the MLS. Also, he is not tied to the pseudo objective appraiser method of increasing and decreasing prices based on factors like rooms or staircases.

I've seen a real-estate agent around here who guarantees that he'll sell your house within x days or he'll buy it for the asking price. To get that deal, you have to set your asking price at whatever he suggests,

You are talking about hiring an agent to represent you. Has nothing to do with obtaining a brokers price opinion to establish your selling price for a home. If the buyer finances, his bank will order an appraisal anyway, so unless you have a true cash buyer, there are going to be two valuations of the property anyway.