Answering three common questions about appraisals to prepare sellers.
What should sellers know about appraisals? An appraisal is an opinion of price, but you have to understand that banks hire appraisers to make sure that the property value is worth what the bank is going to lend. With this in mind, here are three questions that sellers should be aware of when it comes to appraisals:
1. What are appraisers looking for? Appraisers are looking for everything that we look for when we do a CMA or comparative market analysis. This can include various factors that contribute to the value of a property, such as square footage, size of the home, number of bedrooms and bathrooms, and quality of construction.
"A pre-sale appraisal can be used to rebut a lower appraisal if a buyer hires their own."
2. Why do appraisal gaps happen? Whether this gap is high or low, there is always an opportunity to negotiate a win-win deal between the buyer and the seller. If the appraisal comes in lower than the purchase price, the listing agent can work with the seller to come down on the price and the buyer's agent to come up on their offer to meet in the middle.
3. Should I get a pre-sale appraisal? There are times when a pre-sale appraisal may be recommended, such as when there is a disagreement on the list price between the seller and the agent. However, it is important to understand that a pre-sale appraisal can be used to rebut a lower appraisal if a buyer hires their own.
Appraisals can be a confusing part of the process for many people, so don’t hesitate to ask me any questions that you have. Call or email me anytime; I am here to be your real estate resource. I look forward to helping you through the selling process!