Let's talk about an appraisal and when is one needed. As a real estate broker, this question comes up frequently.
The lender orders an appraisal to make sure the value of the property is sufficient to cover the amount of the buyer's loan.
When listing a property, it is crucial to show how you determine the asking price. When a Real Estate agent does this research, it's called a CMA comparable market analysis. This information is useful to share with the appraiser, along with the details of the home. Have a list of the improvements, like dates of the roof and HVAC. When was granite installed, and that third bathroom added?
Remember I have to sell the house 4-5 times.
What happens when the appraisal comes in low?
When appraisers have questions about one of their properties, it is not unusual for them to give me a call if the home is in a neighborhood that I am familiar with or have recently sold.
Two appraisers called me this past week to gain some insight into homes they were working on for either refinancing or current sales. Thinking this would be a subject for tomorrow's radio show.