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» What Is A Real Estate Market Analysis?
Recently I got a direct mail piece from a local real estate agent offering to provide me with a market analysis. She promised to let me know what my home is worth. Basically, she is hoping that I will ask her to prepare this analysis, a free service and then be so star-struck with the numbers that I will ask her to sell the home for me... and perhaps ask her to find me another home to buy. Good marketing for the real estate broker.
Even better for you if you own commercial or investment residential real estate as well. There are thousands of real estate brokers out there hoping you will ask them to prepare a market analysis for your property. If you are seeking to refi the property, your first call should not be to an appraiser. Appraisers will provide you with an "MAI Appraisal" - aka "Retail value" of the property. But lenders will lend based on the "Street Value" - what your property will really sell for today.
Contact a real estate broker and tell them that you want to know what you can hope to get for your property if you have to sell it within the next four months. Tell them you know you'll take a hit. Ask them what the number would be. Agents want your business, so they will probably put on rose colored glasses and give you a number. Take the rose colored glasses off, reduce the sum by about 10% - give or take, as you feel the situation warrants - and that's your quick sale value. If you count on this number when you apply for the loan, you will probably be satisfied with the value the lender comes up with as well. Coming to a meeting of the minds with your lender is one of the most critical factors in a successful application.
