Five Tips for Receiving a Home Appraisal
As Florida home sales drop slightly, even in strong markets such as Orlando, what’s a seller to do? How can you be assured that your property does not remain untouched for too long, while guaranteeing a final price well above the actul value?
A appraisal if often recommended.
Because the residential Florida real estate market started to cool in 2005, it’s important to price your home correctly in order to lure in potential buyers. Therfore, a second opinion can be needed on top of the real estate agent’s view of what your house is worth.
Appraiser will relate to the buyer
An appraisal will look at the home from a visual standpoint, taking into account considerations from the proximity to schools to cracking or flaking paint; all the factors someone thinking about a Florida home loan would analyze.
The appraisal also will analyze the health of the local housing market, providing owners with more personalized expectations for selling their home. So, what do you need to know about these helpful options? Here are five tidbits of appraisal insight, courtesy of the American Society of Appraisers:
1. What the appraisal report includes: Your appraisal - which could range in length from two or three pages to more than a hundred, depending on its scope - will include details about the house, a description of the neighborhood and side-by-side comparisons of similar properties. It will also contain an evaluation of the area’s real estate market, notations of major problems with the property that will affect its value and an estimate of the expected time it will take to sell the property.
2. How an appraisal report is developed: Appraisals are opinions of value, and residential real estate appraisals compare your home with similar homes that have sold; the goal is to find Fair Market Value. Remember, an appraisal is NOT the same as a home inspection. Inspections look for physical imperfections in the home, making sure it is structurally sound and so forth.
3. How to get a copy of your appraisal: You paid for an appraisal when you bought your house. If you didn’t request a copy of the appraisal at the time, you can request it from your Florida home loan lender - it’s your right under federal law.
4. What to look for in the report before you sell: Focus on items that had a negative adjustment - they might be a good checklist for elements to update or remodel in order to attract higher Florida mortgage loan offers. Examples of issues that could cause a negative adjustment: less than the typical number of baths for the house’s size, outdated kitchens and baths, or a one-car garage or no garage in a neighborhood where two- and three-car garages are standard.
5. Why an appraisal before your home hits the market might be wise: The fresh appraisal will help accurately price the housee and ensure it will eventually appraise for your asking price at the time of the sale. Sellers are sometimes shocked when their house appraises below the asking price, which could cause a deal to fall through or for the seller to be forced to reduce the home’s price.
The goal is to not over-shoot the value of your property; you’d never receive bids for those seeking Florida home loans in that case. You need to focus on making a profit, while also coming across as fair to all buyers.
