The process of selling your home can be one of the most stressful experiences of your life, but many sellers tend to overlook one of the most stress-inducing steps: the home appraisal. Once you’ve placed your house up for sale and had someone accept your offer, you’re in the clear, right? Not necessarily. Most lenders will demand that an independent assessor visit and value your home to make sure your asking price is consistent with market value.
Luckily, it’s relatively rare for the home appraisal to result in the sale not going through, but it can still be a nerve-wracking experience. The more prepared you are for the process, the smoother it will go.
Below are 5 common home appraisal myths that often mislead home sellers:
- The appraiser represents the buyer. Although the buyer is often the one paying for the appraisal, the appraiser is actually there to ensure that the lender’s interests are represented. Lenders work under strict guidelines, and they will not loan out more money than the house is worth.
- An appraisal is not the same thing as a home inspection. A home inspection is carried out on behalf of the buyer and is performed to identify any potential disqualifying issues with the home. The appraisal is carried out on behalf of the lender and is strictly to determine the monetary value of the property.
- Fancier houses will be appraised at much higher rates. The appraiser determines the value of your property based on the size of your house, the lot, and the going rate in your neighborhood. While they also take into account the home’s condition and the quality of the infrastructure, high-end appliances, and decorative features do not factor into the assessment. Spending a lot of money renovating your house may make it more attractive to buyers, but it will probably not help you get a better assessment.
- All measures of home value are the same. There are several ways of assessing the value of your home, and they are all likely to differ. For example, the appraised value of the home may be different from the fair market value, and what the buyer has agreed to pay. If the appraiser determines that the property is not worth the amount of the accepted offer, the seller and buyer can work to negotiate a new price. Both the appraised value and the fair market value differ from the assessed value, which is the value a local assessor places on your home to determine your rate of property tax.
Having your home appraised is a necessary step in the already stressful process of selling your home. Knowing what to expect before the appraiser shows up can make this procedure far less of an ordeal. Even if the appraisal doesn’t go according to plan, you may still be able to negotiate with the buyer and move forward with the sale of your home.
Appraisals Unlimited is here to give you the service you deserve, whether you have questions about what a home appraisal involves, or you’re looking for an experienced and honorable appraisal partner today. Contact our office or order an appraisal through our online request form.
If you’re interested in learning more about these solutions or need an appraisal today, don’t hesitate to contact Appraisals Unlimited, either by calling 781-449-7600 or emailing us at email@example.com.