I am often asked by many home sellers I work with in the Metro Detroit Real Estate Market, what is the biggest hurdle to overcome when selling a home? Historically the home inspection has always been the number #1 hurdle, however for the past several years, the number one obstacle in the home selling process has been getting the home to appraise for the sales price. There are still many restrictions and guidelines that are really inhibiting home values to appreciate and often, the appraisals come in below the sales price that has been mutually agreed upon by the home seller and buyer. Isn’t that what market value should be? What a home seller is willing to sell for and what a buyer is willing to pay for the home?
I always attend every home appraisal for every home I list for sale. One tip I have been suggesting to my home sellers is to create a spreadsheet listing all of the home improvements that have been to the home since they have owned the home. With this list I suggest it to include the cost of the feature or improvement. By doing this, this helps justify the value of the home sales price. Along with providing this information to the appraiser, I will supply them with other recent home sales that have sold in the market place that are comparable or help build a case for the subject property. Again, by taking 30 minutes to come up with this spreadsheet of the features, this can often help with the appeal to the appraiser to justify the home sales price and help overcome this hurdle in the sales process.