In real estate markets where the inventory of unsold homes is escalating a common problem occurs. That is sometimes when a deal is struck it can be put at risk by a low appraisal. Meaning that unless the seller lowers their price or the buyer puts more down the sale can be scuttled. What can be done to avoid such a headache? Let's find out.
Typically appraisers select three recently sold properties that are similar to yours to use as a point of reference when determining the value of your home. Taking into account things like age and condition, plus size and location of the so called "comps". While also factoring in any special issues that might lower the sales price of the comps - such as being sold out of foreclosure.
Also the rules have changed and lenders and mortgage brokers can no longer select the appraiser. Because it was felt sometimes the appraiser was influenced to bring in whatever valuation was needed to put the deal together. Which may have produced inflated property values which lead to the real estate problems we are trying to work through.
So a reason for a low appraisal is the appraise isn't familiar with the neighborhood.
Another cause could is a stagnant housing market means there are fewer sales. Fewer sales means fewer suitable comps. Adding an element of uncertainty to the process.
Simple human error is a third possibility. A harried appraiser might overlook features of your house or select the wrong houses to compares yours to.
Then what to do to avoid such a predicament? You want to make it easy to come up with a fair valuation. Even if this is a subjective option with nothing to insure it's 100% accurate. You still want to set the table so the value is the best it can be. Here's how.
First thing is to dig up comps yourself with the help of your real estate agent. After you find recent comparable sales in your area you want to learn if there were any unusual circumstances behind the sales such as a foreclosure, divorce, lots of deferred maintenance etc. Offer this info to the appraiser. Anything that will make their job easier is appreciated and will definitely help you get a more accurate appraisal.
Curb appeal can make a good impression when the appraiser visits. Maybe not a lot but every little bit helps. So treat this situation like an open house and have your house ready as if it were on display.
Highlight the selling points. Is there anything about your house that makes it stand out like special upgrades, renovations or recent remodeling? Provide the appraiser with a list of these. Pointing out the landscaping, little known benefits the neighborhood offers (schools) the yard filled with trees. Sometimes under the gun to get the appraisal done the appraiser may not notice all these.
Double check the facts in the final report. There's no problem asking to see the appraisers report to see if there are any mistakes like the square footage area of the house, size of the lot, number of bathrooms and so forth. If such mistakes are found a do over is in order.
You're wise if you anticipate problems like a low ball appraisal. That way you can be a step ahead of the problem so that it doesn't derail your sale. Those who follow the steps laid out will likely find themselves with an appraisal they can live with. Even if they are a somewhat subjective judgement call. - 31386
Typically appraisers select three recently sold properties that are similar to yours to use as a point of reference when determining the value of your home. Taking into account things like age and condition, plus size and location of the so called "comps". While also factoring in any special issues that might lower the sales price of the comps - such as being sold out of foreclosure.
Also the rules have changed and lenders and mortgage brokers can no longer select the appraiser. Because it was felt sometimes the appraiser was influenced to bring in whatever valuation was needed to put the deal together. Which may have produced inflated property values which lead to the real estate problems we are trying to work through.
So a reason for a low appraisal is the appraise isn't familiar with the neighborhood.
Another cause could is a stagnant housing market means there are fewer sales. Fewer sales means fewer suitable comps. Adding an element of uncertainty to the process.
Simple human error is a third possibility. A harried appraiser might overlook features of your house or select the wrong houses to compares yours to.
Then what to do to avoid such a predicament? You want to make it easy to come up with a fair valuation. Even if this is a subjective option with nothing to insure it's 100% accurate. You still want to set the table so the value is the best it can be. Here's how.
First thing is to dig up comps yourself with the help of your real estate agent. After you find recent comparable sales in your area you want to learn if there were any unusual circumstances behind the sales such as a foreclosure, divorce, lots of deferred maintenance etc. Offer this info to the appraiser. Anything that will make their job easier is appreciated and will definitely help you get a more accurate appraisal.
Curb appeal can make a good impression when the appraiser visits. Maybe not a lot but every little bit helps. So treat this situation like an open house and have your house ready as if it were on display.
Highlight the selling points. Is there anything about your house that makes it stand out like special upgrades, renovations or recent remodeling? Provide the appraiser with a list of these. Pointing out the landscaping, little known benefits the neighborhood offers (schools) the yard filled with trees. Sometimes under the gun to get the appraisal done the appraiser may not notice all these.
Double check the facts in the final report. There's no problem asking to see the appraisers report to see if there are any mistakes like the square footage area of the house, size of the lot, number of bathrooms and so forth. If such mistakes are found a do over is in order.
You're wise if you anticipate problems like a low ball appraisal. That way you can be a step ahead of the problem so that it doesn't derail your sale. Those who follow the steps laid out will likely find themselves with an appraisal they can live with. Even if they are a somewhat subjective judgement call. - 31386
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Now that you're up to speed on how to avert low appraisals that plague some Las Vegas Nevada real estate transactions, maybe you'd like to know more. If so why not visit TakeMeHomeToVegas.com? There you'll learn more about Henderson, Nevada real estate, or the Las Vegas new homes segment or get info about condos too.
