“A picture speaks a thousand words.”
What is an appraisal? It is a valuation of property at a given point in time. An appraisal is a valuable tool for the protection of:
Seller-reduces days on the market
Buyer-pays market price
Mortgage company-will only loan on that amount - market value
Can’t my real estate agent give me the value? Your real estate agent can provide a Comparative Market Analysis, but only a licensed appraiser can provide an official statement of value.
How does an appraiser establish the value? The appraiser will inspect the home for condition, upgrades, etc, and measure for square footage. This is not the same as a “home inspection.” The appraiser will then look for recent sales (sales within past 6 months) comparing square footage, lot size, garage, bedrooms, etc and closest proximity to the subject property.
Often sellers will say that is a buyer expense. However if an appraisal is done upfront, it could prevent issues from arising later.
Scenario: A house is under contract. The appraisal comes in lower than the contract price. If a financing is involved, the buyer may have to make up the difference or the seller will have to reduce the price.
If you are thinking of putting your house on the market, consider an appraisal. The market now is much more competitive. For a faster sale, you need to be positioned correctly for a value the market will support.
Coldwell Banker Willis-Smith