Appraisals Can Protect Buyers, Sellers and Lenders

Posted on Jul 7, 2019 in Financial Tips

Seeing something with one’s own eyes is the best way to make an evaluation. That’s the purpose of bank appraisals, which are designed to protect banks from over lending, homebuyers from over-borrowing, and home sellers from overpricing their homes.

Once the purchase offer is accepted by the seller, the homebuyer’s lender orders an appraisal of the seller’s home to determine the home’s true market value based on location, quality of materials, featured amenities and other criteria.

The property’s condition also impacts value, so sellers are often advised to order an appraisal before putting their homes on the market to help them determine a reasonable asking price. To make sure the home evaluation is as high as possible, sellers are advised to clean the home, repair anything that’s damaged, such as a gate latch or dripping faucet, and to improve the home with fresh paint, new surfaces such as countertops, or whatever makes the home look tired and dated.

When the appraiser arrives, the seller is expected to be on hand to answer questions. The appraiser will be armed with “comparables,” which are similar homes in size and location that are on the market or have recently sold. This is the seller’s opportunity to tell the appraiser about new updates, new features and amenities in the neighborhood that make the home more attractive, such as nearby parks and public transportation.

Share the appraisal results with your Berkshire Hathaway HomeServices network professional to move forward with a more informed selling or buying strategy.

From Chuck Barry’s July 2019 Issue of the Berkshire Hathaway HomeServices Monthly Newsletter.

© 2019 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity.

Thinking Of Selling Your Home?

Find out how much your home is worth!
Request your free no-obligation home valuation now!