Understanding the Lender's Appraisal
Many Sellers think that the Price of their Home is determined solely by what they are willing to accept and what the Buyer is willing to pay. When a Buyer is paying "Cash" for the Home this is a true statement. However, there is one more variable that can affect the sale of a home assuming that a bank loan is involved - The Lender's Appraisal.
To protect the interest of their Investors, the Buyer's Mortgage Lender hires a Licensed Appraiser to give an independent and objective opinion of what the property is worth. The Appraiser compares the House with similar homes in the Neighborhood that have recently sold. Square footage, Amenities and the condition of the Home are taken into account.
Renovations and Home Improvements made by the Seller usually add value to the Home, while defects such as needed repairs or code violations decrease the property's value. The Seller's Real Estate Agent can provide the Appraiser with up-to-date information about Neighboring Homes that have sold to support the seller's asking price.
This is important information for Seller's to understand especially in our current market. While Appraisals can be disputed and sometimes increased in the Sellers Favor, this can vary from Lender to Lender.
So the next time you interview a Realtor, don't hire the individual who simply claims to sell your Home for the "Highest Price" but do hire the Realtor who has a proven Marketing Action Plan that will sell your Home for the Highest Realistic Price Possible based on the Current Market.
Have a Real Estate Question, give Kathy Hyatt a call or visit: www.KathyHyatt.com