Should I Hire Someone to Clean My House Before An Appraisal?
Mary Ellen – you are not alone in your thoughts but frankly you are wrong. By the way the number one reason a home is not selling is price. Buyers do not want the listing agent to be there looking over their shoulder. You also make it much harder to have showings when you make the listing agent accompany the showing. Appraisers are an independent party that is hired to offer an opinion of a home’s market value that is free of any undue bias from the parties in the transaction.
What is a home appraisal contingency during a home purchase?
I know I am losing money every month on the mortgage and taxes but it is worth what it is priced at I think. A good real estate agent will attend the home appraisal, so they can answer the questions the appraiser has and make sure they understand the facts about the home. Appraisers may need feedback from someone who knows the house to do their job.
What does an appraisal mean?
An appraisal is an unbiased professional opinion of the value of a home and is used whenever a mortgage is involved in the buying, refinancing, or selling of that property. The borrower usually pays the appraisal fee, which can be several hundred dollars.
Give the appraiser space
This is particularly true in a market with appreciating home values. Let’s say that the appraiser finds 3 similar homes in the neighborhood that sold 3-5 months ago for an average of $500k. If the market was stable, the appraised value would be right around $500k. However, if there were 10 offers on the home that bid the price up to $525k, that is an important data point that shows that the market is changing over time and values have gone up. Since there was an active bidding process between multiple, arms-length bidders on the open market, the fair market value has been determined by what the market was willing to pay.
If there are 9 other buyers behind you willing to pay a similar amount, you may have no choice but to pay above your appraisal amount. Brandon Hays, a real estate broker with Stellar Realty Northwest in Portland, Oregon, said that the key to fighting an appraisal is to work with your real estate agent to find comps that prove your case. Appraisers study recent sales of nearby homes that are similar to yours – what are known as comparables – when determining the value of your residence. If you can find recent comparable home sales that fetched a higher price, you might be able to successfully contest your appraisal, Hays said.
The Sales Comparison
Having the purchase contract available also lets the appraiser account for concessions made by the seller, such as paying for closing costs or including personal property with the purchase. But what if you can’t find comparable home sales to use in your argument? Susanna Haynie, broker/owner of Colorado Real Estate Group in Colorado Springs, Colorado, said that buyers and sellers can work together to overcome a low appraisal. Ultimately, the real estate agent you hire will have your best interests in mind when it comes to your appraisal.
Why should you care about home appraisals as a buyer?
You do not need an appraisal if you have 22 percent equity in the home. I agree with you that providing comparable sales data that does not apply to the subject property makes little sense.
It is an opinion of value by one appraiser at one point in time, based on their analysis of market data. Valuation of real estate is partially data-driven and partially subjective. If you ordered three appraisals, you would likely receive three different values for a home. The fair market value of a property is the price that a willing and knowledgeable buyer would pay to a willing and knowledgeable seller, when both parties are acting voluntarily and in their best interests. While having the purchase terms available does influence the appraiser, it can offer data to support a particular price that isn’t necessarily supported by past market sales.
I am not suprised at all that you see this from some real estate agents. Every piece of real estate is unique, with a unique market value that varies over time.
- By the way the number one reason a home is not selling is price.
- Mary Ellen – you are not alone in your thoughts but frankly you are wrong.
- Buyers do not want the listing agent to be there looking over their shoulder.
What happens during an appraisal?
During a home appraisal, a licensed appraiser conducts a thorough inspection of the property. These factors include the condition of the property, any upgrades or additions made to the property, the size of the lot and “comps” or recently sold properties of comparable size and condition in the same market.
Buying the right home for you, despite an appraisal shortfall of $5k-$10k, can be the right decision. Maybe the appraisal was faulty or maybe it simply makes sense to pay a little more to get the house you want.
This means that the loan officer, real estate agents, buyer and seller are not able to influence the appraiser’s analysis. The opinion of market value should come directly from recent comparable sales and market data. Pricing a home properly is bar none the most important thing you can do as a Realtor.
Talk to your agent about what goes into a home appraisal and what actions they recommend for your unique property. They’ll also know how your house compares to others on the block and what makes local buyers tick. For most buyers and sellers this is an emotional time and feelings play an important part of the process. My team and I have an incredible marketing plan that floods other agents with our listings.
The Appraisal Process and How Appraisal Values Are Determined
There is an art to pricing homes for sale, and the appraisal is only one piece of the puzzle. You can hire three different appraisers to price your home, and get three different prices – much like with real estate agents. That’s because the buyers’ lender won’t loan them more than what an appraiser says your home is worth. It’s why home sellers rightly fear the prospect of a low appraisal. Unless your buyer was looking for a reason to walk away, they likely want the deal to stay together as much as you do.
She has all the stuff written up in a book but who reads that stuff while they are looking at a house. Years ago whenever the real estate office got a new listing all the agents from the office came for a showing so they knew what it was like. I realize the internet has replaced that but I still think it would help get the whole office out there selling. Some people still look at newspapers and the real estate magazine I am just not happy at the moment. It is priced right and I am not going to keep dropping the price .
Understanding how to price a home is one of an agent’s most valuable skills. Smart sellers should be looking for agents who sell homes for close to the original listing price. The best Real Estate agents have a reputation for pricing homes accurately and not telling a seller what they want to hear to get a listing. This is one of the lowest things a Real Estate agent can do and violates the code of ethics we are supposed to follow. John the question that was asked was regarding getting rid of PMI after the sale so your comment does not apply to this situation.
What Is a Home Appraisal?
The ball’s in the seller’s court here — it’s up to you to decide if you’re willing to renegotiate the sale price so that it aligns with the appraisal outcome. A low appraisal may seem like a major misfortune when you’re selling your house — both for you and for your buyer. While appraisals help buyers avoid overpaying for homes, a seller may feel that a low appraisal is inaccurate and be reluctant to drop the price. If a bad appraisal is standing between you and your home purchase or sale, look into getting a second opinion via another appraisal by different person. Better yet, present a factual case for a higher value to the original appraiser.
Home appraisal tips – and what is home appraisal based on
Exceptional Real Estate agents avoid giving in to the desire to say what will make sellers happy just to attract business. Top notch Real Estate agents will price each home using their training, understanding of the market and comparable sales. In a hotly competitive market where bidding wars are common, the appraisal may come back low because of rapidly appreciating prices in the area. If a home receives 10 bids that raise the price $25,000 over what an appraiser thinks the home is worth, clearly the market is valuing the home at a higher price relative to past sales in the area.