If You Want To Move, Be Prepared To Sell Your Home Twice
There is still an imbalance in the supply and demand for homes in Tallahassee, and that means that home sellers are facing some stiff competition for the too-few number of buyers in the market. Sure, the imbalance is far better than what we saw in 2012, but it exists nevertheless.
Unless you are selling an investment grade property, there is a great likelihood that you will be looking for a buyer who does not plan on paying cash for your home. Instead, they will be financing the home, and that brings in a whole new set of "eyeballs" into the deal.
Because of this, I warn home sellers to be prepared to sell your home twice.
Your Price Must Pass Muster ... Twice
Not only do you need to convince a ready, willing and able buyer to make an offer to buy your home, you must also convince the bank's appraiser that your home is worth the amount that you've convinced the buyer to pay.
If you've read our report on the glut available in the high end homes segment of our market, then you might already realize how important it is to find the correct initial asking price for your home.
Home values at the higher end are under great pressure, and appraisers are not just going to validate a purchase made by an uniformed buyer. So even if you do get your home under contract, market data (recent home sales and current active listings) better support the price at which you and the buyer came to terms.
Post Housing Bubble Changes
Back in the wild days that created the housing bubble, there was not the same level of accountability on property appraisers that we are experiencing today. The prudent appraiser recognizes the bank(s) as their employer, so they are going to be conservative on their valuations for many more years. Until we see a balance in supply and demand in the Tallahassee real estate market, do not expect anything to change for the better.
A buyer's opinion of value of your home is only part of your challenge.
Work with your real estate listing agent to ensure that you have a grasp on how the home will be appraised, and recognize that if you value your home at an amount higher than it will appraise, you most likely will not procure a sale that will close.
Yes, there are exceptions to every rule (like the cash buyer who just has to have your home), you'll likely be dissatisfied with the results you get by marketing to the exception.
If you would like to start the process of selling your home, ask us to give you a valuation analysis. It's a safe way to see what you are likely to get in today's market, and it will help you decide whether or not now is the time to move.