Whether you’re a first-time seller or a seasoned pro, the valuation process used to determine your home’s fair market value can be a little intimidating. Lenders require the valuation to ensure they’re not loaning the proprietrix increasingly money than the value of the home.
So if the valuation comes in lower than the sale price, your proprietrix will need to come up with the difference in mazuma or negotiate to lower the sale price. And if you can’t reach an agreement, your proprietrix can walk yonder from the deal thanks to their appraisal contingency.
Still, Lonnie Heward, a certified appraiser in the Phoenix metro zone with over 20 years of experience, emphasizes that an valuation is nothing to worry about: “The process is a lot of worldwide sense. We don’t do any magic . . . All an appraiser is, is a glorified reporter. All we do is collect data, put it together in a report, and requite it when to you.”
The appraiser aims to fairly and impartially determine your home’s value. While most of the valuation process is out of your hands, there are tangible steps you can take as a seller to ensure a fast and well-judged appraisal. We spoke with several appraisers and a top real manor wage-earner to bring you the thirteen weightier home valuation tips for sellers.
1. Segregate the weightier offer on your home (hint: it’s not unchangingly the highest)
The offer you segregate may influence the fate of your home appraisal. For example, if you sell to a mazuma buyer, they may waive the appraisal contingency and entirely skip the appraisal. In a strong seller’s market, a proprietrix may offer to make up the difference between the appraised value and their offer in mazuma to tropical the sale.
Mark Deering, a top real manor wage-earner in Grand Rapids, MI, shares, “In this hot market, we see six to 15 offers on a home, and each offer has 30 items that can be negotiable. There’s a lot of variables, and you might not plane pick the highest price offer if there’s flipside one that just has largest terms and less contingencies.”
Lean on your real manor agent’s expertise and experience to segregate the weightier offer for your selling goals. If you segregate an offer with an valuation contingency, review the deadline to ensure it’s reasonable.
2. Partner with a real manor wage-earner who knows how to round up comps
When an appraiser calculates your home’s market value, it all comes lanugo to how your home stacks up versus comparable properties. Comparable properties, tabbed “comps,” are homes recently sold in your zone with similar characteristics to yours in terms of square footage, number of bedrooms and bathrooms, amenities, and overall condition.
If you partnered with a top agent, they would have considered comps when setting your home’s listing price. So as long as your home sells for tropical to listing price, there shouldn’t be any surprises when the appraiser comes around. Deering emphasizes:
“Your wage-earner did a good job of coming up with market value when you listed it . . . so the valuation is just a formality. The appraiser is just reassuring the wall that’s financing the mortgage that yes, they’re paying $250,000 and yes, it’s worth $250,000.’”
Now, say you’re selling in a competitive market where prices are on the rise and your home sells for well whilom the listing price. In this instance, your wage-earner will need to justify why the upper sale price is a pearly market value. To do so, they can round up the comps for the appraiser and indicate why your home is of equal or higher value to them.
Rachel Massey, a certified appraiser based in Ann Arbor with over 30 years of experience, says that the effectiveness of this strategy depends on the appraiser:
“Appraisers are individuals, just like teachers are. Some will fathom the ‘sales’ that are provided. It is up to the appraiser, however, to determine if the sales are ‘comparable.’”
3. Compile a detailed list of recent upgrades
While the value of work and money you put into your home is obvious to you, it may not be obvious to an appraiser. Help them out by providing a detailed list of the upgrades you’ve completed in recent years. You’ll rarely see a dollar-for-dollar return on your renovations, but they may help uplift your home’s overall value.
Angela Miller, a certified appraiser in Tidewater, VA with over 25 years of experience, shares that the market moreover dictates how much value renovations add. For instance, she recently appraised a condo that sold quickly thanks to a hot seller’s market. Although this condo was far increasingly dated than a recently remodeled condo in the same zone with a new kitchen and bathroom, the condo only sold for $4,000 less. “I was floored,” she says, but that was what the market valued it at.