A Denver appraiser said today, “If you do not like the value of your home today, blame your neighbors. They sold too low.” Now they might not have been able to control, that but they did have to sign the contract. This Denver Realtor was at a continuing education class today and I heard that and “the last thing I look at to establish value is dollars per square foot.” Yet everyday, I meet folks who think that is the one measure of value for their home in Denver.
So who sets the value? Your Denver Realtor? The Appraiser? The Owner? Actually it is the market of homes currently available, as well as the homes that have recently sold. Distressed properties might be considered, however in the south suburban Denver area, there are very few. And the question is if the house can be purchased for less NOW because there are homes on the market at the lower price, then it could affect you.
An experienced Realtor can assist you in establishing the asking price for your home, not the value. A willing buyer has to bring you an acceptable “arms length” contract offer and then value is established.
The appraiser affirms that the price in the contract is a fair value for the lender to underwrite.
I did get a couple of good tools too…one is www.comppull.com. Anyone can get an appraisal for your purposes at a much lower cost than a full appraisal. No one visits your home and the interior details are not specified, but it is a great tool if you are thinking about re-financing, or about to put your home on the market. It does take 3-4 days to get your report. Another great tool is www.costvsvalue.com which is a cost versus value report.
Make sure to consult with a Professional Full Time Realtor to help you establish value. It may not be the right time for you to sell. OR it could be the perfect time to go find that new Denver Home.