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.
First, know that appraisers 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 were the proper permits for them.
Most importantly, they will be looking at comparable home sales in your area. They’ll look at similar homes that have sold recently in your area. They’ll start in your subdivision, then work their way out. Overall, they look at all of the data to see if the value of the home matches what the buyer and seller have agreed upon.
After this, multiple things could happen. One possibility is that the value comes up higher, which is great for the seller. If it comes in lower, the gap will require negotiation. We can check if the appraisal report is correct, as everyone makes mistakes. Just know that an appraisal gap does not mean the deal is over. We can come up with a win-win.
To make sure your deal goes well, you should consult with a real estate agent from the beginning. We can help you make sure the property is priced correctly from the start so you don’t have misplaced expectations. We use the same data to choose a price that the appraiser does, so we can help you get the best number.
If you need help with any of this, please reach out! We would be happy to assist you in any way we can, so call or email us anytime. We look forward to hearing from you.