Appraisals
03:39 pm
Things to know about appraisals
An appraisal is one person’s opinion of an item based on recent past sales and current market values at the time of the appraisal.
There are four basic types of appraisals these are wholesale, retail, auction and insurance.
Wholesale appraisals are the amount you could expect a reseller or dealer to pay. Typically wholesale values are 50 to 60% of retail. Realistically wholesale appraisals are the most accurate because you can nearly guarantee finding a buyer in a short period of time.
Retail appraisals are based on what you could expect to sell an item for if you had a good busy retail environment where there are a regular amount of collectors frequenting. Typically the average person without the proper resources doesn’t realize retail prices. Retailers spend a lot of advertising dollars to get the right collectors in their store. They also have time to keep their items on the shelf. You may or may not have time at your disposal.
Auction based appraisal are based on who shows up and places a bid. Auction values can go in either direction and sometimes to the extreme. An item that sells for $1000.00 retail could go for twice that at auction or bring in only half. In general the more desirable the item the better it does at auction. This is why high-end art is almost always sold at auction. Auctions also offer the advantage of getting the deal done in a short amount of time. There’s no waiting for the right person to see the item on the shelf.
Insurance appraisals are typically the same value as retail. This is based on what it would cost you to replace the item. Often insurance appraisal values are referred to as replacement values.
The value of an antique is based on what someone is willing to pay. Collectors looking to finish out their collection may pay more for that last widget than the average shopper would pay for the same item. Retailers can’t afford to pay retail prices and not make a profit.
Antique s are fun enjoy.
CM
Selling Real Estate at Auction.
06:43 pm
Auctions are one of the fastest growing trends in the real estate market in the United States. World wide nearly half of all real estate is sold in this manner but here at home it’s still considered a new thing. There are advantages to selling real estate by auction and disadvantages. We’ll go over them in just a bit.
The auction method of selling real estate is nothing new. Most everyone can recall the farm foreclosures and bankruptcy auctions of the eighties where it seemed like another farmer was hitting the wall on a daily basis. Their cattle, tractors, equipment, personal items and land sold at dirt (no pun intended) cheap prices in order to pay back their loans. These auctions left a bad taste in the mouths of most Americans and for good reason. Nobody wants to loose it all and we have it in our heads that an auction means bad times.
What we forget to consider is that auctions happen every day and all around us. Nearly everything is sold by the auction method. Items such as gold, oil, stocks, high end antiques, art and even the food you buy is all priced by an auction. Real estate is no different in fact all real estate is ultimately decided by the auction method even though you never recognized it before. What do you think is happening when you put in an offer? That offer is actually a bid that the seller can accept or deny. Well that’s an auction all be it a small and personal one but it’s still an auction.
The advantages to selling real estate by auction are numerous and I’ll try to cover as many as I can. The first thing you need to know is that auctions don’t mean hard times as I’ve explained above. You normally set a minimum or reserve price when you sell real estate. This means you won’t sell for less than a certain amount of money. This protects you if you don’t get the amount you need.
The next thing is you may get more money because of what is called competitive bidding. Everyone likes to win and bidding is no different. You’ve done it on auction websites and you spent more than you wanted to because you just had to win. Well this works out great for you the seller because the obvious increase in your final sale amount. Two out of three properties sold at auction realize a higher sale amount than by conventional realty services.
No contingencies and no backing out once the auction is finalized. Who says the buyer gets to back out at his or her own convenience. You don’t have to fix your home to impress the buyer or agree for them to get financing or sell their home. At auction you just take the bid and hold their down payment regardless of the buyer’s ultimate outcome.
There are some disadvantages to the auction method. Auctions are the one and only way to ultimately figure out what something is worth. The value of anything is only worth what someone else is willing to pay.