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What is an Appraisal?
To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold.
Appraisals are generally used at the time of contract by the buyer's lender. But there are times that a Seller may benefit from an appraisal in setting a listing price. Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?
Too often sellers believe that it is what the buyer and they that control the sales price. And that is true if the buyer is paying cash, however if there is a loan, the lender's appraisal will impact the sale.
Things taken into consideration for the value of the WNY home are:
The condition of the home
Renovations and home improvements add value to the home
Defects such as needed repairs or code violations decrease the property's value
Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.
Appraisers are licensed in the state of New York and are required to go through continuing education. Like home inspectors it is a good idea for you to select your Appraiser before you find a home if you will be selecting the appraiser.
Read Also: Check Appraiser's New York State License
New York State Society of Real Estate Appraisers
What is the difference between market value and appraised value?
The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a Real Estate Broker or Agent.
Read also: National Association of Realtors® Appraisal Resource Page
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