Do not let the home appraisal process take you by surprise.
If you’re planning to sell your home, you may encounter a situation where a buyer comes along with a lender, and the bank requires an appraiser to assess the value of your property. Today, we’ll discuss everything you need to know about home appraisals on residential real estate.
What is a home appraisal? A home appraisal is when an appraiser, an independent professional, evaluates your property’s market value based on its size, location, condition, and other factors. After visiting your home, the appraiser will compare your property with other homes in the vicinity that have recently sold. This information is used to determine the estimated value of your home.
What do appraisers look for? When an appraiser visits your home, they’ll evaluate various factors, such as the size of your home, the number of bedrooms and bathrooms, the quality of construction, the type of kitchen, the countertops, the cabinetry, and the flooring. They’ll assess the condition of your home and consider any improvements you may have made.
What happens if your home is overpriced? In a market where home prices are climbing, you may experience what is known as an appraisal gap or deficiency. The appraiser may determine that your home is not worth the amount of money that the buyer is offering. In this situation, the buyer may request a price reduction, or you may need to negotiate a compromise. If you refuse to budge on the price, the buyer may walk away from the transaction.
Should you get a pre-appraisal? Some sellers may consider getting a pre-appraisal before putting their home on the market. However, this may not be the best approach. First, it can be expensive to pay for a pre-appraisal. Second, the buyer’s bank may require a third-party appraisal to ensure neutrality. Therefore, getting a pre-appraisal may not be necessary and won’t guarantee that you’ll get the appraised value you want.
It’s essential to understand the appraisal process when selling your home. If you have any questions or concerns, call or email us for guidance. With our help, you can ensure that your home is accurately appraised and the selling process goes smoothly.