Guest post by Dawn Sullivan, owner of All Shores Mortgage in Long Island and Redfin Partner Lender.
Aside from confirming that I’ve locked them in at a record-low interest rate, the best news I can share with a home buyer is that their appraisal came in high, meaning the home is worth more than they are about to pay for it. Last year, my team and I found ourselves delighting Redfin clients with this news more often than not, so we decided to take a closer look into it.
We reviewed all the transactions we worked on in 2011 to find that on average, Redfin home buyers had an appraised value that exceeded their purchase price by more than $14,000. The other homes we financed last year appraised for an average of $4,722 more. A high appraisal is an ideal situation for a buyer because it means he is starting off with additional equity in the home.
|Brokerage||# 2011 Home Purchases||Average Appraised Value||Average Purchase Price||Average Appraised- Value-to-Purchase- Price Ratio||Median Appraised Value-to-Purchase Price Ratio||Average Equity from High Appraisal|
If numbers could talk, what would these ones say? They tell us that Redfin agents are really good negotiators. I think this is directly related to Redfin’s unique approach which compensates agents based on client satisfaction rather than commission. I see time and time again that a Redfin agent’s ultimate goal is to ensure that their clients get the best deal possible and are happy throughout the process. I always enjoy the opportunity to work with a Redfin client, especially when I’m able to deliver the news of a high appraisal!