Pre-Listing Appraisals in a Changing Housing Market | ValueRight Appraisals

Written by George Heredia, a Certified Residential Appraiser with more than 30 years of valuation experience and in the local the Dallas–Fort Worth market.

For a few years now selling a home was fairly easy. Just list it and sell it under 30 days. Sometimes sellers could get more than the asking price with multiple offers. Those days are gone. That happens when markets change. They often change slowly not overnight and unless you are doing statistical analysis for market trends on a daily basis you're just not going to see it. That's where Real Estate Appraisers come in. We are REQUIRED to analyze market trends, and therefore we perform these statistical analysis on a daily basis, typically with specialized programs and on different neighborhood and market areas. In spite of the hype an news blurbs, mortgage rates are STILL above 6% with an annual average of 6.1% to 6.5% and that is usually for steller perfect credit for purchases. Refinances, especially those with cash out options, are generally higher [source: bankrate.com].

According to data from the National Association of Realtors, housing supply fell to about 1.6 months of inventory in early 2022, which was one of the lowest levels on record. A balanced housing market is typically considered to be around five to six months of supply. While inventory remains below long term averages in many areas, the number of homes available for sale has been gradually increasing as the market adjusts.Source: National Association of Realtors Housing Supply Data. What the National Association of Realtors is not reporting is that foreclosures are up as well as bank owned transactions. These begin to erode local markets' median housing prices which YOU are competing against. Again, Real Estate Appraisers see this data on a daily basis when looking for comparable sales and listings. Appraisers know what the market is actually doing. One option many homeowners are choosing is a pre-listing appraisal. This is an independent opinion of market value prepared by a certified real estate appraiser who analyzes recent sales, market conditions, and the specific features of the property. Appraisers can identify physical condition issues on a property that could limit financing options or slow down a transaction.

For many sellers, knowing the realistic market value before listing or during a listing can help make the entire process smoother. Need a Pre-Listing appraisal or an existing listing appraisal? Email me at gheredia@valueright.com or call 310-678-7707.