# Bank appraisal value and asking price - for sale by owner.



## canabiz (Apr 4, 2009)

We are going to list our place after the New Year. We will try to sell on our own first before listing with an agent, if necessary.So far, we have not brought in any agent to do a market evaluation but will do so shortly. 

I remember getting my house appraised this summer when we applied for a HELOC. I know the bank typically put in a pretty conservative value when it comes to appraisals and the number is unbiased i.e. the appraiser has no emotional attachment to the house.

My question to you folks is: Is the appraised value a good number to go by, in terms of setting our expectations and knowing what our house is worth? I know appraised value rarely equals market value but I thought it would provide a good starting point for us to know what asking price ballpark we should set.

Your thoughts?


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## marina628 (Dec 14, 2010)

The last house i sold went for 118% of the appraised value .Generally they are lower than market value .


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## kcowan (Jul 1, 2010)

Appraised values tend to lag the market because they are based on actual sales of comparable properties.


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## Four Pillars (Apr 5, 2009)

I would suggest doing your own evaluation.

The best way is to know your market - find out comparables in the area and what they sold for.

Go look at similar houses in the area and find out the eventual sale price.

I've never done this, but consider "hiring" a real estate agent with access to MLS for this info. If they are hungry enough, they will give the info for a (cash) fee.


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## Quotealex (Aug 1, 2010)

The appraised value is the market value as at the appraisal date.


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## OptsyEagle (Nov 29, 2009)

canabiz said:


> We will try to sell on our own first before listing with an agent, if necessary.So far, we have not brought in any agent to do a market evaluation but will do so shortly.


I think you should do your own appraisal. The above comment is pretty rude. Either use an agent and pay them or don't use them and don't pay them. Using them and not paying them is unethical, but please live your life the way you want, just don't complain when the next person takes advantage of you.


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## Four Pillars (Apr 5, 2009)

OptsyEagle said:


> I think you should do your own appraisal. The above comment is pretty rude. Either use an agent and pay them or don't use them and don't pay them. Using them and not paying them is unethical, but please live your life the way you want, just don't complain when the next person takes advantage of you.


If you are talking about my suggestion, you might want to put your glasses on and read it again. I specifically suggested that the OP hire an agent and *pay them a fee *for providing the MLS info. This probably isn't in their current business model which likely involves just getting a commission for a house sale.

If I was an agent, I would jump at the chance to make some money for actual services rendered instead of the usual scenario of only getting paid after a house sale.


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## canadianbanks (Jun 5, 2009)

The appraised value is usually lower than market value in rising market and vice versa.

Just find out what comparable properties have been selling for in the last few months and you’ll get an idea what the market would bear at this point. 

I don’t know where you live, but I’m in Toronto (416) and the market is still tight here (not enough quality supply). As soon as there is ample supply of properties on the market the bidding wars will cease to exist and this alone will take 7-10% off the current selling prices.


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## m3s (Apr 3, 2010)

List price is easy. Just watch MLS for similar houses. I did this and the appraiser came to the same list price as I did. Besides, you can always sell for more than the list price if you get really quick offers. The list just determines how much showing you do imo

Unless you enjoy showing your house, I'd list closer to when most people buy. I notice that some houses sell fast, and others kind of get "stale" Not sure if it's buyer perception of a house that's taken so long to sell, or greedy sellers. I kind of like competing with neighbours for the sales because if we both hold out it justifies the price to the buyer (hence the boom imo)

The only thing appraisers or agents are good for imo is to get historical sale prices. To see how much it's spread from the list prices. This should be public info, but I found it easy to find if you chat with neighbours. I had better awareness than the agents to be honest and found they only feed you lies to pressure you. Fast sale is better than an extra $20k to them


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## spirit (May 9, 2009)

*I used a bank appraisal*

7 years ago when I was exeutrix of my parent's estate I did a bank appraisal. My bothers wanted a realtor appraisal also since I was going to buy out my brothers to allow my son to take over the mortgage. I was happy to do so. The realtor price was larger but when we factored in the commission the two prices were pretty equal. Just my experience.


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## the-royal-mail (Dec 11, 2009)

spirit said:


> ...exeutrix...


What's that?


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## andrewf (Mar 1, 2010)

Let me google that for you:

ex·ec·u·trix/igˈzekyəˌtriks/
Noun:	
A female executor of a will.

I was not aware of that term.


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