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The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

Appraisal Myths Too Many Sellers Believe

The home appraisal process can be nerve-wracking for many sellers. You probably already listed your home, and even received an offer, and now someone is coming in to tell you what the house is worth? Someone who can quickly state a price that sinks your sale? It only makes sense to be concerned.

 

Fortunately, most appraisals do not ruin a sale. However, there are some common myths that sellers believe that need to be dispelled. The more you know what to expect, the less likely you are to be unpleasantly surprised.

 

Keep reading to see appraisal myths far too many sellers believe.

 

1.    The appraiser can tell you what a buyer should pay.

 

There is an art to pricing homes for sale, and the appraisal is only one piece of the puzzle. You can hire three different appraisers to price your home, and get three different prices – much like with real estate agents.

 

The appraiser will give an educated opinion on the value of the home based on training and experience. If the appraiser is good at what he or she does, then the price will usually be close to the market value of the home, but not always.

 

It can be pretty frustrating, then, to find out that the bank will not loan the buyer any more money than what the home appraises for. You, your Realtor and everyone else involved knows that the appraisal is only an opinion, but it is still the view the bank uses to base their loan decisions.

 

If the home is appraised lower than the offer, either you or the buyer will need to come up with the difference if you want to sell at that price. Sometimes there is a compromise. Both the buyer and the seller have a meeting of the minds. The seller comes down on their price a bit, and the buyer puts more money down to make up the difference.

 

These are your options unless you think there was a gross error that causes the appraised value to fall short of the contract price. In this case, you will need to know how to fight the appraised value. Winning an appraisal dispute is not easy. Make sure you or your real estate agent are well prepared.

 

2.    A home inspection and an appraisal are the same.

 

A home inspection and appraisal are very different. A home inspection is intended to identify issues with the home – issues that everyone should be aware of before money is exchanged. In contrast, an appraisal aims to determine the market value of the home. The appraiser will look at similar homes in your area that have sold recently, also known as comps, to determine a value.

The home inspector is looking for mold infestations, problems with the foundation, roof issues, plumbing and electrical problems. The appraiser is comparing the features of your home to other similar homes to come up with a price for the lender.

 

There are times where the appraiser does take on the role of a home inspector. For example, if the borrower is getting an FHA or VA mortgage, the appraiser will look for certain deficiencies. Common problems these loan programs do not allow include the following:

  • Peeling paint on the exterior of the home.
  • Blatant safety hazards like railings missing from a deck.
  • Missing handrails going down a set of stairs.
  • No running water.
  • Non-functioning heating system.
  • Detached gutters.
  • A fence is falling down.

 

You can see a complete list of problems that an appraiser may flag when doing an appraisal. Obviously, if you have any of these problems, it would be wise to fix them.

 

For the complete article, please see the original article on MaxRealEstateExposure.com, by clicking HERE.

About The Real Estate Group

The Real Estate Group (TREG) “Partners in Excellence”

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.