Here are 5 things sellers should know about real estate valuation.
The Appraiser has power over the sale of the house
The home selling process is a “real process” that will unfold as you go through the rigors of selling your home. For there are many people, you will have to deal with in the course of selling. The real estate agent who is the go-between you and the buyer, and who will work alongside you, the escrow agent who will take charge of your paperwork, interested buyers and the final buyer who will be the new owner of your home. There is one more person who will play a very crucial role and you may never meet him, or if you do, it will be brief. He is the appraiser who works for the buyer for the real estate evaluation and has significant power over the sale of your home. The licensed appraiser will inspect a home and determine its selling price, which most home buyers and their financial institutions will deem as law.
A home inspection is for negotiation – by the buyer for the buyer
A home inspection is conducted by an inspector to search for defects or potential issues that could land the home buyer in some loss in the long run. An appraiser, on the other hand, assesses the home for its value. While the former is used by the buyer to ask for a lower price in the negotiation process, the latter is used to determine a viable asking price for the bank – both on behalf of the buyer.
You don’t pay for the appraisal, but you can do your appraisal if you prefer.
The property appraisal service cost is taken up by the buyer, not the seller. It is done on behalf of the purchaser so that he can ask a feasible asking price for the bank. However, nothing is stopping you as a seller from ordering your appraisal if you feel the lender’s appraisal is faulty. Though it will cost you quite a sum, go ahead and do it if it will set your mind free
What to expect for a home evaluation?
Appraisers use a document called the Federal National Mortgage Association (FNMA) Uniform Residential Appraisal Report when surveying single-family homes. This document seeks information about the interior and the exterior of the home – the home’s amenities, number of bedrooms and bathrooms, floor plan functionality and square footage. The appraiser will have to personally inspect the interior and exterior and register any conditions that adversely affect the property’s value, such as needed repairs. The report will mark the street map, an exterior building sketch, details on square footage calculations, photographs of the home’s front, exterior photos of homes used in the comparison process, and related information. And data from market sales, public land records, tax records, and more information that went into determining the property’s fair market value.
The appraisal could be faulty
Even though an assessment is usually accurate, a lower valuation could be possible. An inaccurate appraisal as well. Especially if the appraiser is a novice in your area. So you should always ask for a copy of the final evaluation report and read it carefully, even though the lender has ordered the report. The lender is obligated to show you a copy, which can yield a higher valuation if you find discrepancies.
Contact RD Clifford Associates, Inc. for your appraisal
RD Clifford Associates, Inc. is a full-service provider of Appraisals, Valuations, Consulting and Expert Testimonies for the real estate, mortgage lending, machinery and equipment, capital asset, divorce and estate settlement markets. An established leader in the appraisal and valuation industry, with integrity we have meeting our customers’ needs since 1990. Fueled by a desire to consistently provide exceptional quality in research, appraisal, valuation and consulting services, at competitive market rates.