How Should I Prepare For A Home Appraisal? (Subscribe to Patrice’s YouTube Channel here.)
Hi everyone. Today I want to talk to you about appraisals to see if you are the home seller. An appraisal is done once you’ve gotten past the inspection that you accept an offer for. And if the buyer has a mortgage, then the lender will hire an appraiser to come out and determine the value of the home as well as if the home is safe, depending on what the buyers financing needs or financing terms are.
So what does this mean for you as a seller? It’s highly important as far as pricing your home to make sure that the home does appraise. Because if the home does not appraise, then you and the buyer will have to negotiate on what’s going to happen in order to close on the home, whether it’s the buyer offering more money out of their own pocket or you are coming down in price in order to get it sold. And if you can’t come to an agreement, then the deal will fall apart. So you don’t want to get all the way to the appraisal stage of the buying process, or the selling process to find out that you can’t come to agreement and then your home goes back on the market.
So pricing your home effectively is highly important. So you want to make sure that you have the right realtor who has the knowledge and is also going to be honest with you on what the home will sell for. You’ll find that many realtors want to compete and they want to tell you what your home is going to sell for much higher than what someone else told you. And if you have the right realtor who’s a great marketer, it’s very possible for you to get a lot more money for your home or at least get an offer for much more than what your home is worth. However, if the buyer has a lender, has a mortgage, is getting mortgaged on the home and they don’t have money out of pocket in order to buy a home, it doesn’t matter if they offer you $50,000 over asking, if they don’t have it, they just don’t have it.
However, if you are in a situation where your home is a hot buy and you have all these buyers making offers or in a bidding war situation, then it’s more likely you can get more than what you’re asking should the home not appraise. So if buyers really want your home, they may waive the appraisal to make sure that they win the home and they have the funds to support that, or they may even give you an appraisal guarantee. We want to spend a certain amount of money should the home not appraise. So there are ways around that. However, if you want to make sure your home sells, you definitely want to price it effectively and make sure you have realtors going to be honest with you on what that price should be that you have a smooth transaction, you don’t have issues, and you are being most efficient and effective when getting your home sold.
So that’s all I have for you today. If you have any questions, just leave me a comment below, or you can email me at [email protected] all right, thanks. Have a good day. Bye.
This has been “How Should I Prepare For A Home Appraisal?” by Patrice Henderson of Designed Living Real Estate.
Be sure to subscribe to her YouTube channel for all of your real estate tips, home tours and advice! Get your FREE listing consultation or home evaluation to find out what an appraisal may determine your home is worth.