Certified Value…the real deal

Several days ago Jonathan Miller of The Matrix blog (see the Other Blogs I Follow link) wrote an article regarding the oft-quoted real estate mantra, “Now’s a good time to buy”. Miller was correct, of course, in stating that when is a good time to buy is very subjective, depending upon the personal circumstances of the Buyer. Whether the market was going up or down was irrelevant, says Miller. But, what if something could be done in marketing a home that did – even if just a bit – make it a “better time to buy”?

Enter the Transition Team of Coldwell Banker’s Fairfield, Connecticut office. We have been charged with developing marketing ideas that deal especially with this current economy and into the future. There are few parameters for our working group; each team member already knows that the days of gimmickry are long gone.

At our most recent meeting, two principle reasons for Buyers holding back from making offers to buy were identified. First, Buyers have serious concerns about their immediate financial future and are awaiting some reassurances from their employers. Second, Buyers expect the market to continue to go down and are unsure about the real current and near-term value of homes. The longer - term value of a home does not appear to be as great a concern to most Buyers as much as affordability (read optimism). It’s the present and near-future real value that worries them. After all, nobody wants to pay too much for anything, especially now.

Regarding the first concern of Buyers, they should wait. Buyers need to know what their financial picture will look like and then make an appropriate decision. For the second concern, the concept of Certified Value was proposed.


Once a Buyer makes an offer on a property, the banks will send in an appraiser to certify the property’s real value. With many banks making Scrooge look like a philanthropist, that appraisal will be dead-on. Banks absolutely do not want to be holding a mortgage for an overvalued property. So, why not cut to the chase and certify the value of a property by having an independent appraiser perform an appraisal prior to marketing. Then, take it one step further – factor in market direction. This Certified Value program will likely be in place by early January 2009, once some of the details have been finalized.

I’ve been using this concept of identifying a property’s true value for my clients for the past 15 years. But, by bringing in an independent appraiser and factoring in market direction, both Buyers and Sellers can be assured of the true, certified value of a home. Both parties deserve nothing less than the real deal.