Answering three common questions about appraisals to prepare sellers.
If you’re planning on selling your home, you probably heard about appraisals. But what is an appraisal, and how does it work? Before listing your property, it is important that you completely understand or at least have an idea of what it is.
Question: What is an appraisal?
Answer: 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.
The result of an appraisal can affect the success and price point of your sale, so you have to prepare for it. Today, I’ll be answering three common appraisal questions to help you prepare for an appraisal.
Question: What are appraisers looking for?
Answer: Appraisers consider factors like floorplan, quality of construction, finishes, number of bedrooms, and square footage. They will compare your home to the listing, making sure that the features are accurate.
They also take note of any upgrades made to the house and whether there were proper permits for them, so make sure that you all have those in order beforehand. Lastly, they will be looking at comparable home sales in your neighborhood.
"Remember that selling your home can be expensive and you don’t want to pay extra for something unnecessary."
Question: Why does an appraisal gap occur, and what should I do if it happens?
Answer: Because house prices are steadily increasing, the risk of appraisal gaps increases. When the appraiser's valuation is less than the agreed-upon price, appraisal gaps occur. Having a dependable and competent Realtor, like me, to guide you will help provide options when this does happen.
Question: Should I get a pre-appraisal done?
Answer: A pre-appraisal happens when sellers get an appraiser to look at their home before listing their property. I understand why people might think to do this, but I wouldn’t recommend it for several reasons.
First, the appraisal is normally seen as the responsibility of the buyer because it is a common requirement to get a loan. Next, some lenders won’t accept the appraisal you get because they want it done by someone they see as an impartial third party. Remember that selling your home can be expensive and you don’t want to pay extra for something unnecessary.
Appraisals can be confusing for many people, so don’t hesitate to ask me if you have any questions. Call, text, or email me anytime. I am here to be your real estate resource. I look forward to helping you through the selling process!
