Answering three common questions about appraisals to prepare sellers.
Are you thinking about selling your home? If so, how exciting! This process means a fresh start and new beginnings. However, before you list your property, it is important that you completely understand appraisals. An appraisal is an opinion of value, where an expert appraiser will come to your house and estimate how much it is worth. They will provide a written report based on their inspection of pertinent information that determines your home’s value. This could greatly affect the success and price point of your sale, so it is crucial to be prepared. Here are three common appraisal questions and their answers:
1. What are appraisers looking for? They consider a wide variety of factors, like the floorplan, quality of construction, finishes, number of bedrooms, and square footage. They will compare your home to the listing to make sure the features are accurate. Also, they’ll take note of any upgrades that have been made to the house and if there is anything that will add value. One mistake that many sellers make is thinking that some features of their home are more valuable than they are, so rely on a professional to price your home.
2. Why does an appraisal gap occur, and what should I do if it happens? Home prices are rising rapidly, which increases the likelihood of appraisal gaps. That happens when the value the appraiser provides is less than the agreed-upon price. There are several things you can do if this happens, so make sure you have a professional on your side to guide you through your options. Some options include the buyer filling the gap, the seller reducing the price, or a compromise to something in between. Just know buyers are pickier than they have been, so get your price right from the beginning to avoid trouble.
3. Should I get a pre-appraisal done? This is when sellers get an appraiser to look at their home before they list. I understand why people might think to do this, but I wouldn’t recommend it. First, the appraisal is normally seen as the buyer’s responsibility since it is typically required to get a loan. Also, some lenders won’t even accept the appraisal you get because they’ll want it to be done by someone they deem as an impartial third party. Therefore, instead of doing this, get a real-time valuation from a professional.
Appraisals can be a confusing part of the process for many people, so don’t hesitate to ask me any questions you have. Call or email me anytime; I am here to be your real estate resource. I would also be happy to give you a no-obligation market analysis of your home. I look forward to helping you through the selling process!