Pre-sale appraisal needed for sale of old house?

2 years ago

I've read many of the other posts re: pre-sale appraisals, and mine, like everyone's has its own uniqueness. Looking for opinions on deciding what to do. Situation: Mom no longer around so time to sell her home. Trying to determine whether to use an agent and if I should get a pre-sale appraisal.

Details:

1. Large (3600 sq ft), 60+ yr old home with an outdated interior, on large lot (just under an acre) in highly desirable area near Portland, OR. Has some deferred maintenance issues. Has a mid-century modern feel and great bones.

2. In an area of higher priced homes - $1M +

3. There aren't many comps in the area. Plenty of similarly aged homes in similar condition, but none that i have found to be comparably sized either in sq footage or lot size.

4. As is often the case most overall home sales in the area priced higher than market assessed value on the property tax records.

5. The plan was to get it organized for an estate sale, then get it on the market in April. All proceeding according to plan until the minor inconvenience of a global pandemic got in the way.

6. As i have been cleaning out for the estate sale, 2 neighbors have serious interest in it. One provided a really low ball offer.

7. The interest from the neighbors makes me wonder about going the FSBO route. Would like to not pay the commish if I don't need to. And agents are hesitant to provide a comp market analysis before you sign a contract with them. I have talked with 2 agents in detail about the house - one we used in selling my MIL's house last summer (5% commish, highly desirable neighborhood, sold in about a month); another an old friend who is an agent in a town a couple hours away. He has been generous in providing info.

Trying to determine:

Whether to get an appraisal - It would give me a "professional" opinion of one person that I can use it or not as a gauge. It would run about $700. Kind of a waste of money if I don't use. Or I could just go for the property tax assessed value.

Unfolding state of the economy - Uncharted waters we are all going thru. I temper how much i read, but lots of projections of an almost dystopian economic landscape for potentially some time. Interest rates are low, but a recession looks undeniable. And if banks stop lending, I'm at the mercy of all cash offers. One slight possibility is hanging onto the house for a year, but then i have property taxes and other costs. Even in the best of times the future is uncertain, even more so now.

Whether to use a realtor - this is a big transaction so i don't want to screw up. But if i get an acceptable offer without an agent, thinking I may approach one to handle the paperwork for a few thousand. But then it wouldn't be on MLS.

Comments appreciated. thanks.

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Comments (4)

Seabornman
2 years ago
I sold my last house by myself and still wonder if I could have gotten more $ out of it. I still paid a half commission as the buyers wanted someone to represent them. I bought my current house without a realtor and think they could have gotten more on the open market. I'd go with a full-service realtor or maybe one who does nothing but gets it on MLS.
lmmcnitt
2 years ago
I’m not sure if things are different in Portland vs. other cities, but I’ve bought and sold several homes and always interviewed at least 3 realtors who put together a package including comps, how they would market my house and what they would price it at. They came out, toured the property and went back and did their homework. Realtors are used to this sort of interview. I made my decision based on their presentation and the combination of the above factors, not solely based on who would price it highest.
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sushipup1
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A good realtor would never think of requiring a signed contract before doing a competitive market analysis. That is how you interview agents for the job. Keep calling and talk to more agents. A CMA will be far more valuable than a professional appraisal for setting a price.
Lyndee Lee
2 years ago
I don't see the value of a professional appraisal in this situation. Those appraisals are based on recent sales and the economic situation has changed enough that recent sales may not be enough to convince lenders to make loans.

Even the best agents can't forsee how the market will change in the months ahead so look for agents who are willing to be flexible. Beware those who use a rigid schedule, such as reduce the price by 4% on the 30th day after listing.

Pre-sale appraisal needed for sale of old house?

Comments (4)

Seabornman

lmmcnitt

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sushipup1

Lyndee Lee

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