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As the home buying process nears the closing, both buyers and sellers need to prepare for the appraisal. This often the last step the lender requires before approving financing for the buyer, so it’s an important part of the home sale process.
An appraisal is an unbiased, professional evaluation of the value of a home or other piece of real estate. It takes a look at the property, its physical characteristics and the local market conditions to determine the fair market value of a property.
The appraisal is similar to an inspection, but it is a separate step. In an inspection, the inspector is looking at details about the home and its condition that make it safe or unsafe to live in. The inspector is also comparing the home to current building codes to make sure the home is up to current safety standards.
An appraiser is simply looking at the home’s market value. The appraiser has rigorous training to learn how to evaluate property values and puts that to work to evaluate yours.
Lenders want to know that they’re lending no more than the home’s actual value, because they don’t want to have a borrower upside down in a home loan at any point. If the home does not appraise for what the buyer is offering, the loan amount will not be approved. This either means the buyer can walk away or the buyer and seller can renegotiate the terms to match the appraised value.
Sellers who are worried that a home may appraise too low can take some steps to improve the appraisal value. Repairing cracks in the plaster or stains on the wall, for instance, before the appraisal can help improve its value. Odors and staining on the carpeting should also be addressed before the appraiser comes. Improving curb appeal and showing details about improvements and repairs that are high in value are also helpful in boosting the home’s potential value.
The home appraisal is a critical step, and often one of the last hurdles between initial offer and closing. Both sellers and buyers need to understand this step, so they can avoid unhappy surprises when the appraisal report comes back. If a home is competitively priced and well taken care of, the appraisal shouldn’t be a problem in the overall sale of the home.
Ted draws energy and joy from building synergetic relationships with his Clients. Ted's nature is graciously gregarious and persevering; he's honest; and he's been dedicated to a substantial list of clientele throughout his 25 years in the hospitality business and almost two years as a REALTOR. His passion is creating a sincere, successful relationship with people.
Ted grew up in a family of Realtors in central Indiana, earned a degree in economics and philosophy from the University of Notre Dame, and jumped into all aspects of the restaurant business. His ensuing hospitality career path eventually led him into the Event Management Sales & Service role in hotels and quickly guided him to Los Angeles, San Francisco, and finally to a luxury resort in the Napa Valley, where he, his husband, and their dog have resided for almost a decade now.
The irony is not lost on Ted that his ‘growth’ journey has culminated in“living happily ever after” in an agricultural area with a small-town feel and sense of community strikingly reminiscent of his youth…and as a REALTOR nonetheless!