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 overborrowing, 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.