Once upon a time, in land close, close to here, selling your home was as easy as sticking a "For Sale" sign in the front yard and waiting pen-in-hand to sign your contract. These days – it is far from that easy.
The market has become very competitive for home sellers. When deciding to sell not only are they competing with other home sellers but the rapid increase in new home development means buyers can have a brand new home for a little more than they would pay for a used home.
This problem is compounded by the influx of home improvement shows that increase the buyer’s expectations of what the property should look like. Gone are the days of "as is" selling. Savvy buyers expect their home to be brand new or look like new.
The main problem appraisers’ encounter revolves around the value of the home. Surprised? Don’t worry, we aren’t either. According to the National Association of Realtors, the national median existing home price jumped 15.8 percent from August 2004 to August 2005. However, this past year told a different story. The national median price dropped 1.7 percent from August 2005 to August 2006. Even the home building industry is suffering. The U.S. Commerce Department reported that sales of new single-family homes for August 2006 were 17.4 percent below August 2005.
These declines coupled with stiff market competition mean home sellers cannot afford to overvalue their home when deciding to sell.