Appraisals, Comparable Market Analysis and Lenders

Sellers: Order an Appraisal Report to establish your market price.

An appraisal is a reliable estimate of value used to determine market value. A seller should seriously consider ordering an appraisal before listing the property. Without a appraisal a seller could lose a sale for the following reasons:

If the property appraises for less than the contract price the buyer will not qualify for the type of loan indicated on the contract, allowing the buyer to back out of the deal.

The real estate agent will typically perform a Comparative Market Analysis (CMA). The appraisal laws in Wisconsin, which may vary from State to State, allow real estate agents to perform CMAs without an appraiser's license or certification. A CMA is an important part of an agent's pereparation for a listing and consists of examining sales of properties in the area to arrive at a listing price. The reliability of the CMA depends upon the agent's experience and the characteristics of the property. The agent will suggest a selling price to the seller based upon the analysis. Neither the seller nor the agent is bound by the results of the analysis. The agent is not required to follow any formal procedure in completing the CMA.

Many times an overpriced property "sits on the market" without any offers. Ultimately the asking price is reduced to affect a sale. Every seller wishes to obtain the highest price possible and every buyer wishes to pay the lowest prce possible. Remember; it's the art of negotiating that will benefit everyone the most.

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