Advice To Get The Most Out Of Your Home Appraisal
Thursday, December 31st, 2009All the negotiations are done and you have finally have secured a buyer for your home. The only obstacle remaining is the home appraisal. Don’t worry; you have already won half the battle.
Sales Contract
There is an old adage in real estate; a home is only worth what someone else is willing to pay for it. As the home appraiser begins the process of determining the homes appraised value, the purchase agreement (also known as the sales contract) is used to establish the home’s worth. A home’s worth is established when someone (a buyer) agrees to pay you (the seller) a set dollar amount to purchase your home.
Market Value
The county courthouse keeps a record of all real estate transactions within their county. The appraiser uses this information to locate comparable properties. Comparable properties are similar is both size, style, construction type have sold within the 6 months, and is located within 15 miles of the home that is being appraised. If available, the home appraiser will prefer to use comparables that have closed within the last month and are located 0-3 miles of the home being appraised.
Appraisers will also use the following in selecting comparables: lot size, upgrades in the home, square footage, condition, and year built just the name a few in establishing value. Appraisers will use a minimum of 3 comparables within their report.
In Closing
When preparing for your appraisal, there are a few things that you can do to help establish value. Show that the home has been well cared for by having the interior and exterior of home clean and free of clutter, have the grass mowed and shrubbery trimmed, and be available to answer questions and to discuss any repairs and or renovations with the appraiser.
Hubert Miles is the founder of Waterfront Houses USA, an online advertising service that offers Coastal Properties and Coastal Property in the US and the Bahamas.
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