 |
| Click here if you would like a FREE Home Valuation for your current home |
As most of you may know, before anyone can buy a house with a loan from a bank, the lender needs an objective assessment of the property’s value — after all, the home is the bank’s collateral for the loan. Assessing the value is the job of the appraiser. From my experience as a Realtor, I have come across every kind of appraiser out there. The good, the bad and the UGLY!! Even though I wish I had not experienced the ridiculously low appraisals or the slacker of an appraiser....these encounters have given me the knowledge I need to inform home sellers and buyers about the process and the "secrets" of making that appraisal value go up, up and up!
As many know, individual banks and lenders used to hire their own appraisers that would be employed by their individual companies. Because of all the issues we had back in 2007 to 2009, referred to the "mortgage crisis", now all lenders are required to use an "Appraisal Management Company" (aka "AMC"). This company will hire individual appraisers and, as a bank orders an appraisal on a home, will assign that individual appraiser to that specific appraisal. Confused yet?! Ok, this is what happens in this situation. Ultimately, an appraisal is an opinion of the person conducting the appraisal. As you probably discovered while working in groups in school, some students over-achieve, while some just barely exist. This is exactly what happens in the appraisal world. Some appraisers go above and beyond and then some merely run some comparable property reports, take a few pics and call it a day. You, as a buyer, is ultimately paying this appraiser to do his job....and, you as the homeowner, is relying on this appraiser to appraise your prized property for what it's worth. So, I have put together a few secrets that will help you get your home appraised right!
How to Get Your Home Appraised for What it's Worth
1. GET AN INDEPENDENT APPRAISAL: I tell all my clients who are listing their homes with me to get an independent appraisal done prior to listing. Call around and do some research to determine a well-known appraiser for your specific neighborhood or area that is familiar with the area. This will provide you with the best possible appraisal out there. Also, this will give you the upper hand when it comes to determining a listing price, as well as give you some collateral a bit later in the process. An accurate appraisal report is like money when it comes to the actual appraisal, or an offer brought to you by a buyer's agent. Make sure your agent has this appraisal report accessible (and visible) to all buyer's agents when showing the home, as well as to the appraiser during the actual appraisal. It helps. Trust me. Most appraisals will run you $350 to $500. It's definitely worth the investment....BUT, if that's not something in your budget, PLEASE make sure your listing agent does their work.
2. GET A GOOD LISTING AGENT: Make sure your agent pulls recent comps within the last six months that sold.....within the same subdivision....or within a square mile. No ten mile away stuff. Goodness. Also, make sure your agent takes note of all upgrades and adjusts the price accordingly. Also, make sure your agent meets the appraiser at the property during the appraisal to point out all of the upgrades/renovations made to the home. Also, to provide the appraiser with the agent's comps that can be used as a reference when putting together the report.
3. DON'T ACCEPT A LOW APPRAISAL: If the appraiser happens to appraise your home/or the home you are looking to purchase lower than what you know it's worth, then you do have a few options. First of all, you can appeal the appraisal through the lender. Have your agent provide more accurate comps, as well as a list of upgrades, etc. In my experience, a second appraisal, paid by the buyer, may be necessary when it comes to a low appraisal. For some reason, appraisers don't like to change their appraisal value. Go figure.
So, the point I'm trying to get across here....is that, if you do your work in the beginning, you are more likely to get an appraisal to come in higher and closer to the actual value of your home. And in the long run, that makes everybody happy!
Emily Benner
Real Estate Expert
PalmerHouse Properties
678-458-2284
No comments:
Post a Comment