When selling a property, obtaining a precise and fair market value is crucial, and this is where real estate appraisals come into play. An appraisal not only determines the selling price but also affects the buyer’s ability to secure a mortgage. For sellers working with real estate agents, understanding the appraisal process can demystify steps and set expectations appropriately. This blog explores the appraisal process for properties sold through real estate agents and offers new insights and tips to ensure it goes as smoothly as possible.
1. Understanding the Role of an Appraisal: An appraisal is a professional appraiser’s opinion of a property’s market value based on comparable recent sales of nearby properties, the current market trends, the property condition, and its location. For properties sold through real estate agents, the appraisal is typically required by the buyer’s mortgage lender to ensure the loan amount does not exceed the property’s value.
2. Choosing the Right Appraiser:Although the buyer’s lender usually orders the appraisal, as a seller, you can influence the process by recommending an appraiser who is familiar with your area and has a reputation for fairness and accuracy. Real estate agents often have contacts with experienced appraisers and can make recommendations. Ensure the appraiser is certified and has no conflicts of interest.
3. Preparing for the Appraisal:Preparation is key to a successful appraisal. Ensure your property looks its best by addressing any maintenance issues, decluttering, and doing a deep clean. Provide your appraiser with a comprehensive list of upgrades and repairs done, as these can significantly affect the appraisal value. Also, have ready any home warranty documents or energy efficiency certificates that could enhance the property’s appeal.
4. During the Appraisal:While the appraiser is at your property, be available to answer questions but avoid following them around. They need to inspect the property thoroughly, which includes taking measurements and photographs, and noting any conditions that affect the property’s value. Your real estate agent can represent you during the appraisal to help highlight the home’s features and improvements.
5. Reviewing the Appraisal Report:Once completed, the appraisal report should be reviewed carefully by both you and your real estate agent. Check for any errors in the property details and ensure that all improvements were noted. If the appraisal comes in lower than expected, you can challenge the report by providing additional information or requesting a second appraisal, especially if you believe certain comparable sales were overlooked or misinterpreted.
6. Leveraging the Appraisal in Negotiations:A favorable appraisal can be a powerful tool in negotiations. If the appraisal is higher than your asking price, it can justify a price increase. Conversely, if the market conditions have changed since the appraisal was ordered, this can be used to adjust the selling strategy.
Conclusion
The real estate appraisal process is a critical component of selling a property through an agent. It requires understanding, preparation, and cooperation between the seller, the real estate agent, and the appraiser. By engaging actively in the process, ensuring the property is in its best condition, and knowing when to question the results, sellers can achieve a more favorable appraisal outcome.
Remember, a well-conducted appraisal not only helps in setting a competitive price but also in closing the deal swiftly, benefiting all parties involved. So, embrace the appraisal process as an integral part of your selling strategy to maximize your property’s potential on the market.