There is a difference when a Realtor gives you an Estimate of Value, and when an Appraiser gives you an appraisal. Some folks, quite innocently, pay up to $500.00 (by the way, home evaluations from Realtors are free) for an appraisal on their home before they call a Realtor; perhaps as proof of how much their house is REALLY worth to prospective buyers. Guess what, those Buyers will just compare your home with the others on the market, and the ones that have recently sold. That appraisal does not impress Buyers. Once your home has an offer, the lender will order an appraisal to analyze the price of the house. Lenders these days want appraisals coming in at asking price, not over. And they do! As in all financing, the Lender is going to scrutinize both you and the house.
If it is a refi, it is amazing how high the price comes in. How much money do you want? If it is a new loan, well, how easily the appraisal comes in depends on how much you have made as down payment. Sounds kind murky, doesn't it?
We, as Realtors, cannot call our estimates appraisals because we are not licensed appraisers, even though we may know more about the house in question, and have probably seen the homes the appraiser is using as comparables and the Appraiser has not. Have an experienced Realtor give you an estimate. A real time, real life estimate. We have visited many homes, and have a real feeling for what buyers want. Things that stir people emotionally have value, like that rose covered gazebo. The appraiser does not give value to that, but a buyer may. We, as Realtors, deal in and understand the value of people's emotions.
For up-to-date news on what home values are really doing in your specific neighborhood, please call us for an information chat. We would love to talk with you. We have over 27 years of experience serving folks like you.
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