Paying More on Quincy Homes For Sale is a Bad Idea

Several offers have come across my desk this last week way about listing price. I’ve decided to write a post to debunk the myth that paying more on Quincy homes for sale is a good strategy in our market.

Before deciding what price to list Quincy homes for sale I first determine fair market value. This is done by looking at recent Quincy homes that have sold.

The homes selected will be comparable to the one about to be listed. Adjustments will be made for differences (i.e. additional bathrooms, square feet, rooms, lot size, year built, etc…).

Once all adjustments have been made I will take the average sales price and use that as a starting point to determine fair market value.

The process of determining fair market value this way ensures that appraisal reports will accurately reflect the properties true value.

Recently, I’ve had several offers come in that were $40,000+ over the fair market value. For whatever reason the home buyer has decided to offer so much it is a bad idea.

Quincy real estate agents know that if the property will not appraise at the correct value then the whole deal could very well fall apart. I know several agents in the area that automatically reject offers that are ‘way above fair market value’.

These offers are considered ‘frivolous’ and find there way into the garbage can faster then any others. This is just one instance when paying more doesn’t produce an advantage.

The government just passed legislation allowing lenders to choose which appraiser is used when issuing appraisal reports for Quincy homes for sale. This is very significant because allowing appraisers outside the area to give valuations produces skewed results.

The outside appraiser is often not familiar with specific Quincy neighborhoods. For example, after reviewing a recent appraisal report on an Quincy home for sale, it was apparent that the report was flawed.

This same property was appraised by a local appraiser last week and the valuation was significantly different. The discrepancies arose when deductions in appraisal value were made because the property required repairs.

The original appraiser had driven up from Cape Cod where repair costs tend to be more then in the Quincy real estate market. This may seem insignificant, but when there are so many Quincy FHA home buyers even a few thousand dollar difference in appraisals can make or break a deal.

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