After the buyer and seller come to a "meeting of the minds" on the price and contract terms, there is one more person who must be convinced that the house is worth the selling price--the appraiser.
An appraiser researches similar homes that have sold in the same area within the last several months, and compares the selling prices of these homes with the one in question. The appraiser makes adjustments to account for the differences in each property, and averages the adjusted price of the other three homes to arrive at a final opinion of value. In subdivisions or condominium projects where there are many similar properties and numerous recent sales, the appraiser's job is relatively easy. In neighborhoods in which older homes have been renovated, remodeled (and sometimes, over-improved), or when appraising a very unique property, it can be like comparing apples to oranges.
If the appraiser's evaluation of the property is lower than the selling price, it can stall the transaction because the lender may decline the buyer's loan because of the discrepancy.
A real estate agent can work to minimize potential delays associated with the appraisal process by helping the seller to price the home as close to fair market value as possible. And, if problems with the appraisal still exist, the expertise and advice of a professional is key to a successful transaction.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
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