Tuesday, July 11, 2006
Information about appraisals and how they affect your deal- buyer or seller
[RISMEDIA]
Learn how an appraisal report is developed. Appraisals are opinions of value. Residential real estate appraisals use a Comparison Method, which compares your home to similar homes that have sold to come up with an opinion of value. A residential appraisal gives summarized and concise information about your house and is not the same as a home inspection. Request a copy of the appraisal.
When you bought your house, you paid for an appraisal. If you didn’t request a copy of the appraisal at the time, go back and request it from your lender now. It is your right under federal law to obtain a copy of the appraisal report. Make sure you get one from your lender. Before you think about selling, review the appraisal report that was created when you bought your house. Look for things in the appraisal report that had a negative adjustment. You may want to look at updating or remodeling those areas. Examples of areas that might have caused a negative adjustment are: having less than the typical number of baths for houses of a similar size; kitchens and baths that are outdated; or a one-car garage or no garage in a neighborhood of two- and three-car garages.
Get your house appraised before you put it on the market. In a market that is fluctuating quickly, you may want to get an appraisal before you put your house on the market. That will help you price it and help ensure that the house will appraise for your asking price. Many sellers are shocked when their house appraises below the asking price and, either their deal falls through, or they have to reduce their asking price.
[Your host, John Kneece, has some comments on this article]
What I have experienced is that agents sometimes fail their clients by not telling them the truth about the value of their homes; it is referred to as BUYING a listing- in other words, whatever list price makes the seller happy enough to list with them is the one they place on it. In such processes sellers generally are happy for about one day- and get less happy every day after that-
The same agent mentality which places your home on the market at your price (regardless of the real 'fair market value') also lacks the ability to take responsibility for the failed efforts to sell.
Markets change- usually not in a 24 hour period- generally, from one to three months. This is a fact which can be identified- also marketing plans should be altered to accommodate market changes. In a rising market it is not uncommon for a home to sell for more than can be demonstrated via the appraisal- since competitive sales are usually those which have occurred within the last 6 months- in some cases the market data has not had time to reflect the market position at the time the home is appraised.
If you have questions about your home in the market in or around Orangeburg, SC- please call or email me at 803-378-5208 or info@JohnKneece.com
[RISMEDIA]
Learn how an appraisal report is developed. Appraisals are opinions of value. Residential real estate appraisals use a Comparison Method, which compares your home to similar homes that have sold to come up with an opinion of value. A residential appraisal gives summarized and concise information about your house and is not the same as a home inspection. Request a copy of the appraisal.
When you bought your house, you paid for an appraisal. If you didn’t request a copy of the appraisal at the time, go back and request it from your lender now. It is your right under federal law to obtain a copy of the appraisal report. Make sure you get one from your lender. Before you think about selling, review the appraisal report that was created when you bought your house. Look for things in the appraisal report that had a negative adjustment. You may want to look at updating or remodeling those areas. Examples of areas that might have caused a negative adjustment are: having less than the typical number of baths for houses of a similar size; kitchens and baths that are outdated; or a one-car garage or no garage in a neighborhood of two- and three-car garages.
Get your house appraised before you put it on the market. In a market that is fluctuating quickly, you may want to get an appraisal before you put your house on the market. That will help you price it and help ensure that the house will appraise for your asking price. Many sellers are shocked when their house appraises below the asking price and, either their deal falls through, or they have to reduce their asking price.
[Your host, John Kneece, has some comments on this article]
What I have experienced is that agents sometimes fail their clients by not telling them the truth about the value of their homes; it is referred to as BUYING a listing- in other words, whatever list price makes the seller happy enough to list with them is the one they place on it. In such processes sellers generally are happy for about one day- and get less happy every day after that-
The same agent mentality which places your home on the market at your price (regardless of the real 'fair market value') also lacks the ability to take responsibility for the failed efforts to sell.
Markets change- usually not in a 24 hour period- generally, from one to three months. This is a fact which can be identified- also marketing plans should be altered to accommodate market changes. In a rising market it is not uncommon for a home to sell for more than can be demonstrated via the appraisal- since competitive sales are usually those which have occurred within the last 6 months- in some cases the market data has not had time to reflect the market position at the time the home is appraised.
If you have questions about your home in the market in or around Orangeburg, SC- please call or email me at 803-378-5208 or info@JohnKneece.com
