Things Every Consumer Needs To Know About Real Estate Appraisals...

Things Every Consumer Needs To Know About Real Estate Appraisals...

So, what's the big secret(s) about the real estate appraisal?  For the longest time it seems as though the Why, How and What of the appraisal process has been kept behind locked doors or placed in a hermetically sealed mayonnaise jar and placed on Funk & Wagnall's front porch.  To be honest with you, I did too!

As a seller it is important to remember once you accept a contract on your home the buyers' lender will require an appraisal on the property before they will close the deal.  The reason for the appraisal is to assure the home is worth what the bank is going to finance and make sure the buyer isn't overpaying for the property.

Here are a few things that you need to know about appraisals:

• It is an objective opinion of value.  It is not an exact science.  If three appraisers appraised the same property, they might assign three different estimates of value.
• Most sellers, buyers and lenders want an appraisal that reflects the market value rather than the insured value, assessed value, sentimental value or other types of value.
• An appraiser's estimate of value typically reflects the current market conditions in the subject property's marketplace.  This can change dramatically if market conditions shift.  In today's market this is very true and why proper pricing of your home is important.
• The appraiser's estimate of value reflects the most probable price the property will sell for without special considerations or circumstances.
• The best indicator of market value for residential property is found by applying the sales comparison approach.  Another reason for pricing your home properly.
• Most lenders base a buyer's loan amount on either the sales price or the appraised value of the property; whichever is less.
• Many homebuyers today are writing their offers to purchase subject to the property appraising at or above the sales contract price.

The contract that we use here in St Charles County Missouri has a finance contingency already in the contract but, we do add an appraisal rider to the contract to make sure the property does appraise to the accepted contract price.

I hope this has unlocked some of the mysteries surrounding the appraisal and what the process is to   develop a proper appraisal.  Appraisals when done properly serve to help both the buyer and seller in getting their home closed on and at a right price.

Don't loose a perspective buyer.  Start taking action now and you will be ready when that first buyer walks thru your front door

Remember if you are looking for an agent in O'Fallon Missouri or anywhere in the St Charles County Missouri area to list and sell your home give Don Rogers a call at 314-954-6775 or send me an email at Don@DRogersHomes.com and we can begin the home selling process.  There are a lot of real estate agents the St Charles County area but none better to give you the proper information and help to get your home SOLD.

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