Sellers, the importance of understanding the appraisal process

Reblogger
Real Estate Agent with Keller Williams, San Antonio, Helotes, Leon Valley

San Antonio Homes for Sale are subject to the same appraisal process as any other home within the United States. That is why it is so important to sellers understanding the appraisal process.

Original content by Beverly Herdman

I hear it all the time,

 But my home has several upgrades and updates, vaulted ceilings, hardwood floors, granite, new appliances... the list goes on. 

What does this all really mean with the sale price and the ability to get a contract? 

To put it plain and simple all of those upgrades add the desirability. Yes, it adds value your home, because you will receive an offer much quicker than the another home that does not have the upgrades and is in comparison. It enables you to have more negotiating power, that is where your value comes in.

The reality in our current market conditions is the N VA market is demanding a higher price as we see multiple offers and escalations. This is coming to play because of the law of supply and demand. Lack of inventory, great rates, motivated buyers are frustrated with little to choose from.

The appraisers job is to prove what HAS HAPPENED to the market, ie, past tense. NOT what IS HAPPENING. 

When I go on a listing appointment and I am showing the potential competition within an entire zip code, and there are only a few homes in comparison. Yes, could we list at a higher price and most likely get that number, more than likely. BUT, remember that appraiser? They are looking at what HAS SOLD (previously), it doesn't matter that you may receive multiple offers with escalations. It also does not matter that you are upgraded. The appraisers are not able to take "normal" upgrades and updates in to much consideration because they have to rely on tax records and agent photos of the previous listings.

The importance of understanding the appraisal process and listing your home at the proper price is crucial to your NOT "chasing the market" If you list to high, be prepared to negotiate when that appraisal comes back. It is very difficult and most of the time impossible to contest an appraisal. Don't be a market chaser, it can cost you thousands of dollars listing to high and having to reduce. 

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Beverly Herdman Wine Trail Homes,LLC  Keller Williams Realty
Tel: 540-825-7441 | Mobile: 703-969-4280
beverly@winetrailhomes.com | www.winetrailhomes.com

Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for sharing article on appraisals.  Good info to pass onto clients.

Dec 17, 2012 11:36 PM
Jeffrey Jones
AZ Home Seekers - San Tan Valley, AZ
AZ Home Seekers, azhomeseekers.com

appraisal is always going to be an issue as long as the markets are going up faster than the comps the appraisers are using.

Dec 18, 2012 12:01 AM