Appraisals continue to be a potential issue with every contract; we saw this to worsen with the Atlanta spring ’13 housing market. What if agents and sellers calmly considered options before problems arose; took a step back to think ahead? What if instead of trying to fight a losing battle after a contract is submitted, appraisers were consulted prior to the event? What if sellers went in with something to legitimately challenge a low appraisal with? Like another appraisal?

Atlanta homeowners planning to list over the next few months would be very wise to consider the expected turbulence; we see a challenging market due to many factors. It is reasonable to assume that accurate list price will be critical; do you trust yourself or your agent to determine that? Are you a seller that expects to increase list price based on the media reports that “the market has improved and prices are up”? Do trends nationwide relate to your micro market? No. A staggering 77% of home sellers overestimate the market value of their homes, often deriving value in ways the market will not consider. Previous purchase price, money invested, assessed value, insured value, what I think, what my neighbor said....irrelevant. Home sellers should hire an independent appraiser in advance of listing. The benefits are many, a few include:

• An impartial review of the SPECIFIC micro market and trends therein
• An impartial opinion of value – find out what the home is worth based upon legitimate comps
• A check against listing agents – you’ll quickly see if that agent has the data an appraiser has
• An impartial evaluation of the home – it will be looked at like an appraiser, not an agent
• A current appraisal can be used while marketing the home

Agents should consider suggesting and even including appraisals in their listing program:

• An appraisal can bring unrealistic sellers back to reality
• Listing price can be based on the appraisal, not only the agent’s opinion
• An appraisal can be given to the buyer’s appraiser, this can help establish credibility of the offer
• In the event of an appraisal issue, the appraiser can be consulted to help resolve the problem

Most appraisals start at $375+- and increase depending on the complexity of the home. It’s a good idea to inquire and ask if the appraiser will be willing to update it as needed or help out in the event of a low appraisal. The key is to be prepared and to trust the professionals. The requirement for experience cannot be overstated; sellers must hold real estate agents to the highest performance standards and verify everything, learn how to select a real estate agent.