It’s not enough for a homeowner or her real estate agent to state how much her home is worth or the amount it must sell for. Mortgage lenders, sellers and buyers all depend upon the experience of a professional home appraiser to determine the closest possible market value.
Function
The operation of a professional, accredited home appraiser would be to supply an unbiased opinion of how much a home should sell for in the open marketplace. Contrary to a homeowner or real estate agent, an appraiser has no personal stake in the outcome of his findings. It’s therefore his report implies so much to the mortgage lenders who depend upon him to assist them make proper loan, and also to the buyers that want to know they are not overpaying for a home.
Types of Data Used
An appraiser does an investigation of similar homes in your area that have recently sold. His or her baseline is provided by these homes. He can subtract or add value based upon the conveniences and upgrades the the sold homes have when compared with yours. He finds a lot of his advice during the multiple listing service and county documents. He may also do a field visit, through which he assesses the exterior of the similar homes to discover how they compare to the exterior of your property. He takes into account the quality of schools, access to parks, space from hospitals and shopping, and the crime rate on your area.
Factors
You can not change the neighborhood your home is located in or the number of bedrooms and baths it has, and that means you should concentrate on making the maximum the things you do have control over. Be certain that your home is as clean as you can when the appraiser comes, that everything is in working order, and that small nuisances, such as leaking taps, have been taken care of. Supply the appraiser using a listing of the maintenance and upgrades that you have done in the home, along with receipts or cancelled checks showing how much those changes price.
Misconception
Some people today believe that a home appraisal and home inspection will be the same thing. They are not. A home inspector investigates the house looking for possible problems such as faulty wiring or rotted windowsills. He assesses those things so that a purchaser can take note of them and make an educated decision as to if he would like to purchase the home. An appraiser will essentially take a look at your home through the eyes of a potential buyer, attempting to ascertain how much the market will keep in regard to its price.
Recourse
Read your appraisal report attentively, advices The Wall Street Journal. Make sure the appraiser did not miss anything, such as a bathroom or additional garage. Check the square footage to make sure he got it directly. Take a close look at the homes he used as comparables. If one is close to an adult book store or in a neighborhood with an inferior school district, then you may start to question his precision. Inform any lending institutions involved that you are appealing the accuracy of the appraisal. If you are working with a realtor, involve him on your appeal by asking him to collect the most precise comparables possible. In the end, if you can not come to a settlement, hire another expert appraiser to start from scratch.