Lynn Rand's Blog
If you want to maximize your home sale profits, it generally is a good idea to conduct a property appraisal before you list your residence. That way, you can receive a property valuation from an expert home appraiser. And with this property valuation in hand, you can set a competitive initial asking price for your residence.
A home appraisal may prove to be a stressful experience, particularly for a seller who is unsure about the value of his or her house. Lucky for you, we're here to provide insights into the home appraisal process and ensure that you can prepare for this evaluation.
Now, let's take a look at three tips to help you approach a house appraisal with confidence.
1. Understand How a Home Appraisal Works
Although you've allocated significant time and resources to upgrade your house, it is important to remember that the condition of your residence is one of several factors that a home appraiser considers. In fact, an appraiser will evaluate the current state of the housing market, the prices of comparable houses in your area and other factors to provide an accurate property valuation.
Oftentimes, it helps to work with a real estate agent if you plan to sell your home. Because if you have a real estate agent at your side, you can receive immediate responses to any of your home appraisal concerns and questions.
2. Establish Realistic Expectations for Your Home
Let's face it – what you initially paid for your house is unlikely to match your residence's current value. If you set realistic expectations for your residence prior to an appraisal, you may be better equipped than ever before to accept the evaluation results.
It may be beneficial to look at the prices of houses in your area prior to an appraisal. This information can help you understand whether the housing market currently favors buyers or sellers – a factor that may influence the valuation of your house from an appraisal.
3. Explore Ways to Boost Your Home's Value
There are always options to bolster a house's exterior and interior. Therefore, following an appraisal, you should plan to complete home repairs that could help enhance your house's value.
As you search for ways to upgrade your residence, you may want to reach out to a real estate agent too. This housing market professional can offer recommendations and tips to help you improve your residence, even if you're working on a tight budget.
Of course, a real estate agent provides extensive assistance throughout the home selling journey. He or she will promote your residence to prospective buyers and host home showings and open house events. And if you receive an offer to purchase your house, a real estate agent will help you determine the best course of action.
Ready to conduct a home appraisal? Take advantage of the aforementioned tips, and you can boost the likelihood of a successful house appraisal that leads to a fast, profitable home selling experience.
Home appraisals are an important part of the buying and selling process. Lenders use appraisals to make sure that the home is worth what the borrower is paying. A home’s appraisal value is based on a number of factors, all of which we’ll discuss in this post.
Whether you’re a buyer, seller, or are just learning about the process of buying a home so you’ll be better equipped in the future, this article is for you.
How is a home appraisal different from an inspection?
While home appraisals and inspections are performed by licensed or certified professionals, they have to different functions. An inspection ensures the safety of a home, as well as whether or not it will need repairs in the immediate or near future.
Appraisals, on the other hand, aim to value a home based on its property value, the size of the property, and the location of the property. The condition of the home is a factor in valuing a home, which is why some people confused appraisals with inspections.
Who pays for appraisals?
Like most closing costs, a home appraisal is a burden that falls on the buyer. Typically, the lender you choose will work with will actually order the appraisal. The cost, which usually amounts to a few hundred dollars, can be added to your closing fees. You can find the cost for an appraisal listed on the Closing Disclosure document provided by your chosen lender.
Which factors determine the home’s value?
To appraise the house itself, appraisers will look at the condition of the home. They’ll also weigh the features of the home in their valuation--things like the number of bedrooms and bathrooms, for example.
However, the two key characteristics of a home that contribute to its value are its age and size.
Which external factors contribute to the home’s value?
As you might suspect, the location of your home matters greatly when it comes to appraisals. Homes are appraised based off of average prices for their neighborhood and region.
Other location factors include how accessible the home is, if it’s located on a waterfront, and whether it has desirable views.
When does a home get appraised?
While your experience may vary based on your specific circumstances, most appraisals occur after a buyer has signed a purchase contract. One this is done, the lender will take the steps necessary to order and process the appraisal.
How long is the home appraisal process?
Once the buyer has signed a purchase contract, the appraisal is usually completed and processed within 7 days. The appraisal report will be sent to the lender. This report contains the appraised value of the home. Buyers are entitled to a copy of this report, and should keep one for their own records.
If you intend to sell your home, it often pays to hire an expert home appraiser. With this professional at your disposal, you can learn about the true value of your house relative to the competition and map out your home selling journey accordingly.
Ultimately, there are many reasons to work with a home appraiser, and these include:
1. You can gain insights into the housing market.
During a home appraisal, a property appraiser will inspect your residence from top to bottom. Then, this appraiser will offer a report that includes a valuation of your home.
A home appraisal report includes insights beyond the condition and age of your house. In fact, a home appraiser will look at the prices of similar houses in your area and evaluate your home in relation to comparable residences. By doing so, a home appraiser can provide a report that may help you prep to enter a buyer's or seller's market.
2. You can identify potential home problems.
Let's face it – no homebuyer wants to purchase a house with cracked siding or a leaky roof. Fortunately, a home appraisal can help you identify and resolve any potential problems early in the home selling process.
Typically, a home appraiser will look at a house's roof, its heating and cooling system and other interior and exterior features. If the appraiser discovers any home problems, these issues will be defined in an appraisal report.
Use a home appraisal report to understand assorted home problems – you'll be glad you did. Thanks to this report, you can take the necessary steps to mitigate various home issues.
3. You can establish a "competitive" price for your house.
As a home seller, your goal is to maximize the value of your residence. A home appraisal can help you do just that, as this assessment enables a home seller to define a "competitive" home price, regardless of the current real estate market's conditions.
When it comes to selling a house, performing a housing market analysis may prove to be insufficient. However, after a home appraisal, a home seller can better understand how a residence ranks against the competition and price it appropriately.
Establishing a competitive price from day one is essential for a home seller. And with a home appraisal, a home seller can set a fair price for a residence, increasing the likelihood of a fast home sale.
Before you list your residence, you should consider the aforementioned reasons to work with a home appraiser. If you employ a home appraiser today, you can boost your chances of accelerating the home selling cycle and maximizing the value of your house.
Lastly, if you need help finding a home appraiser, you should consult with a real estate agent. This housing market professional can offer unbiased home appraiser recommendations and put you in touch with the best home appraisers in your area. Perhaps best of all, a real estate agent is happy to provide expert advice throughout the home selling journey to ensure that you can get the best possible results.