When faced with a low appraisal and danger of losing a sale, brokers and agent might consider these real estate data tools to hold the sale together.
Low appraisals happen. We all know there are a number of reasons why – too many short sales in the neighborhood, overpricing, inflated prices for certain homes, etc.
But it’s certainly a dreadful moment for brokers and agents after all that hard work bringing a buyer and seller is for naught.
Most real estate pros will obviously try their best to rescue the deal. Perhaps suggest a second appraisal. Ask the seller to lower their price. Ask the buyer to kick in more cash. It’s a tough exercise.
One handy tool that a broker or agent could introduce to prop up the sale is real estate data.
Real estate data to the rescue
With data providers such as Home Junction, a real estate pro can add a tremendous amount of hyper-local data to their website. This data can be a powerful persuader when it comes to fixing a bad situation.
And just as easy as it is to download the latest app on your iphone or smartphone, adding this gigantic reservoir of local data is an extremely simple task today. All that is required is basically just adding a few snippets of code and bazinga – there is a ton of hyper-local, highly relevant real estate data available for consumers on the agent’s website.
Here are a few suggestions on how to perhaps use that data to combat a lower than anticipated appraisal.
For example, sure this particular appraisal came in below the agreed upon price. But according to Recent Home Sales Data for the area, home prices in the rest of the market are actually on the rise So even if an appraisal for that home is low, it’s evident overall home prices in the area are on the upswing.
Perhaps there were those extenuating circumstances that hurt that appraisal. Perhaps the appraiser did make a mistake. Bottom line – the value of homes in this market are escalating, and that’s a reassuring signal to a buyer. Maybe it will persuade them to put extra cash into the deal.
Conversely, perhaps Recent Home Sales Data shows the market is flat. Or, actually declining. Maybe the seller overpriced their home (gee, how often does this happen?).
Perhaps the seller just had an unreasonably inflated number in their head and the appraisal gave them a reality check. Use your Recent Homes Sales Data to reinforce that bit of realism and perhaps help the seller come back down to earth with a more reasonable price.
Another persuasive tool to use is a Market Trend Chart. Sure, this appraisal is low, but homes sales in this neighborhood are heating up. Show how the number of homes sold is rising dramatically.
The seller might be asking for a little bit more than the appraised value, but point out to the buyer, if they really want to live in this neighborhood, perhaps they should pony up the extra cash.
Maybe there’s a new school going up down the street. Perhaps they are adding a new train station. Or a major employer is coming into town. These factors are sure to boost the values later.
Then there is the overall picture of the neighborhood. For example, Home Junction has a map-based search tool that shows amenities on a map relative to an MLS listing.
For example, you know Mr. Buyer is an avid golfer. Show him how this particular property, is within easy driving distance of three great golf courses.
Sure, the appraisal might not be pretty, but driving just a mile to tee off at one of the area’s best golf courses can sure paint a better picture in the mind of a buyer.
Mrs. Buyer loves coffee and yoga. There’s a cute coffee shop just down the street and a popular hot-yoga studio right around the corner. Does she want to give up that valuable proximity to the things she loves and find a home on the outskirts of town instead? Miles away from everything?
Okay, the appraisal came in low. Money is one thing. But arranging a solid education for your children is another. Show on the map the boundary data for the local school district. Point out how that popular middle school down the street comes in with high marks and worth putting up a few thousand dollars to be sure the buyer’s children can attend a quality school.
Maybe the data shows the area has a problem with crime compared to other areas. Show this to the seller. Let them know they are not going to get that higher price because of that factor and to be realistic. That’s a compelling reason to drop a price.
An appraisal might show the value of a property on a micro-level, but Recent Home Sales, Market Trends and a map of local amenities can help the buyer (or seller) zoom out and see the bigger picture.
Buying or selling a home is an emotional endeavor. The cold, hard numbers in an appraisal can strike a blow to any feelings people have in their heads about a property.
Use the numbers in real estate data on your website to help persuade buyers and sellers to reassess the true value of the property and then what they should do to salvage the deal.