Why Most Clearwater FL Homes for Sale Won’t survive Naked Appraisal
Clearwater Florida - I wanted to take some time out of selling homes and share some crazy things I’m hearing and seeing on the streets. I’ve apologize because I’ve gotten behind on my articles. This is our busiest time since when it’s cold everywhere else, Florida homes and beach condos are even more appealing (I have to agree). We are seeing things changing so rapidly here and I needed to make sure I took the time to keep you updated on what’s really happening in the Clearwater real estate market. I can promise you fact is currently more interesting than fiction. Today I want to share whats happening with luxury beach homes for sale based on our recent experiences. You may find we offer a unique local perspective because we specialize in serving only buyers in the luxury home market. In fact, the last 60 days alone our team has successfully helped 8 buyers purchase Clearwater FL homes for sale and what we’re seeing out here may surprise many of you currently in the market to purchase a property in the Clearwater area. Part of our purpose today is also to help educate you as well as local home sellers who we hope will actually hear our message..”If your home is overpriced it won’t survive the appraisal – so it won’t be sold!!”
Reflecting on some of the crazy things we’ve seen and heard reminded me of the story we all learned as a child of "The Emperor New Clothes."
Remember the story by Han’s Christian Anderson (source: Wikipedia), where “An Emperor who cares for nothing but his wardrobe hires two weavers who promise him the finest suit of clothes from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”. The Emperor cannot see the cloth himself, but pretends that he can for fear of appearing unfit for his position or stupid; his ministers do the same.”
I keep running into the same mindset with local sellers and listing agents in different situations who in my opinion seems afraid to deal with the truth. Everyone seems to be pretending their home’s list price is really the home’s value today…whether we’re negotiating Clearwater Beach Condos or Clearwater Homes for sale, the story is the same – listing agents and home sellers who want to deny the real estate market facts and “hope” their home will sell for yesterday’s prices. While buying a home is an emotional purchase, financing is based on facts not feelings.
We are also surprised to find some of the best Clearwater FL Realtors we know and their home sellers telling to us all the reason’s why they feel their client’s home is “the finest”, “the exception” and almost acting like we might be “the foolish ones” and that we must not really understand or appreciate “this home’s value” and the market. [Not] I’ll even ask them what I’m missing? Please show me the data that backs up this price. Well I’ve yet to get any real data to change the facts all I get are “marketing bullets” and “emotions” but like the clothes on the Emperor- We can see right through it the naked facts…their desired asking price won’t stand up to an HVCC Appraisal.
Sellers seem like Realtors who will tell them what they want to hear – but is that really in their best interest? Their Realtor can even make them feel good temporarily by telling them they see ‘their fine emperor’s new clothes”. Now the seller’s pumped up and the agents get ready to “strut there stuff” with fancy brochures, marketing and explanations why other nearby homes that sold for less in the last 90 days but they don’t believe it will effect their homes value because those were:
* short sales,
* foreclosures,
* not updated,
* smaller,
* not on the same street,
* (or…plug in your favorite reason here)
I can only guess they are in denial about the facts…because everyone wants to believe their listing agent can sell “the invisible clothes” as well as their home to some gullible unsuspecting home buyer. Here’s the truth, the appraiser is going to use homes that sold within the last 90 days, in the same neighborhood, with the same characteristics and up to about 50% size difference. The more closely they relate the better for example waterfront to waterfront, pool home to pool home, 3 bedroom to 3 bedroom. However with so few sales they will use the best they can find with most recent solds meaning ALOT! Now that you know the truth what will you do with it?
Ideally the wishful seller and their agent will have potential buyers call them off the sign in the yard or contact the listing agent directly because then that buyer won’t be represented by a their own Realtor. This can give the home seller’s agents the advantage and opportunity to give them a private showing of these “amazing fine clothes” and sell them on why they just have to have it at or near the asking price.y
The emperor’s new clothes don’t work when dedicated buyer’s agents, like us, enter the picture with qualified serious buyers who are represented and we tell them the truth the whole truth nothing but the truth. When these buyer’s like your home and want to make an offer we find this is where the real trouble begins. The seller’s (often because in my opinion they haven’t heard the truth) feel frustrated and even angry because they really believe “their home is special” and it will definitely appraise for that price even though all the recent comparable homes sold says differently. Yes, your home is special to you and even to this buyer (that’s why they want to buy it) but it’s not worth whatever price you may be emotionally attached to and it’s not exempt for today’s HVCC Appraisal process which is based a lot more on science and less art in my recent experiences and I am seeing appraisals that are much more conservative than ever.
It was so refreshing today to read an article by Julia Fishel, a successful Palm Harbor Realtor who wrote an article that was so dead on I wanted to share some of it here…
Julia and her team market homes for home sellers and more importantly…they actually are successful selling those homes [I can only imagine some of the uncomfortable conversations she must have to have with some of their sellers - real professionals don't pretend to see "invisible clothes" or wish for "unrealistic prices" - they educated their clients and empower them to make the best decisions in any given market].
