Let go of appraisals from the past
Published: May 06, 2013
Managing sellers’ expectations on a daily basis is one of the most challenging tasks a real estate agent is faced with when listing homes in The Bahamas.
It is understandable for all sellers to wish for their properties to sell for top dollar in today’s market. However, by the same token, we all need to be realistic about the state of our economy and current prices.
The key phrase in the above paragraph is “today’s market”. If your home has been lingering on the market for years without any offers, there is a good possibility you could be the latest casualty of market rejection. You may be wondering: why is the market rejecting my house? After all, I am only trying to sell for appraised value.
Now, here is the million dollar question: how long ago was the latest appraisal on your home conducted? If your answer is before 2007, your appraisal is no longer reflecting today’s accurate market value.
Depending on your home’s present condition, it may actually be worth 30 percent to 40 percent less than before the real estate recession started in 2007. Trying to hold on to yesterday’s prices and expectations will not help when selling your home. Furthermore, the sales process will become futile and nothing short of a huge headache and a waste of time and money for you and your BREA Agent.
Most sellers fail to understand that banks in The Bahamas are now requesting for appraisals to be no older than three months in order to facilitate a mortgage. Even though you may have an old appraisal reflecting a much higher market price, the prospective new purchaser’s appraisal will reflect today’s market value which most likely will be much lower than your current asking price. Updating your old appraisal is a must in order to list your home competitively. By failing to do so, your home may remain on the market indefinitely.
The moral of this story: do not be quick to blame your real estate agent for failing to sell your home if you insist in conducting yesterday’s business in today’s reality. Remember, we all work on commission, and if your home is priced unrealistically that it becomes impossible to sell. Agents will have zero motivation to spend time, energy or money on a listing they know they are guaranteed never to sell.
•Carmen Massoni is president of Bahama Islands Realty and has 18 years of experience in the real estate profession in The Bahamas. She has been the recipient of many international awards recognizing her as a top producer amongst her peers.
If you have any questions or need real estate advice, call 322-7770 or email Carmen@BahamaIslandsRealty.com.