Big Bear Appraisal Blog

Allowing the seller to set the list price – While a list price set by the seller will make them feel good, it may prevent them from selling the home in a reasonable amount of time.  The list price should be a reflection of the market, taking into consideration recent sales and current competitive listings.

1. Inaccurate Square Footage – Incorrect square footages of living area come from public records, property owners and old MLS information.  If you are concerned, there is no substitute for due diligence, which includes measuring the home and checking on permits.
2. Using Only Price Per Square Foot – Price per square foot is less accurate in resort areas, because there are so many variables (lot size, view, age, quality, condition, etc) all lumped together.  Recent sales of comps are the most reliable indicators of market value.  A larger home will sell for less per square foot than a smaller home if everything else is the same. 
3. Not Using Realistic Comparables -  The test of a realistic comp is “would a potential buyer also consider it, if the subject were not available?” A comparable sale should be similar in neighborhood & lot size, age, style, appeal, bedroom/bath count and living area.
4. Not Bracketing in Your CMA – Bracketing consists of using sales that are slightly inferior, similar and slightly superior to the subject property.  If you make positive adjustments to the inferior sales, and negative adjustments to the superior ones, it should provide a tight range of value.
5. Not Getting a Pre-Listing Appraisal – While not necessary in every case, a pre-listing appraisal can be useful when you have a unique property.  Perhaps there is nothing like it in the neighborhood, there are no recent sales from the subject tract, or there is a question about the actual square footage.

A pre-listing appraisal can help you price a home to the market so that it can sell as quickly as possible and for the highest amount that is supported by the market.