Home Appraisals: What Sellers Need to Know
A home appraisal is an independent opinion of property value. In a financed purchase, the lender may require an appraisal or another approved valuation to help evaluate the loan. The appraised value can affect financing, but it is different from your asking price, an online estimate, or a home inspection.
I’ll help you prepare relevant property information and understand how the valuation may affect your San Diego home sale.
What Factors Can Affect Appraised Value?
An appraiser considers relevant property characteristics and market evidence. These can include location, size, layout, condition, improvements, and comparable sales. An appraiser evaluates how those factors contribute to value rather than simply adding up what you spent on upgrades.
The lender’s valuation process varies. Some transactions require an interior visit, while others may qualify for a different valuation approach. A cash buyer may also choose to obtain an appraisal.
How to Prepare for an Appraisal Visit
Provide access to the areas requested and keep the home reasonably organized. Gather a factual list of improvements, completion dates, available permits, and supporting records. Let me know about property information that may need clarification.
I can help assemble relevant comparable-sale information for consideration through the appropriate process. The appraiser must remain independent; neither a seller nor an agent can promise or demand a particular value.
What If the Appraisal Is Below the Purchase Price?
A lower valuation can affect the buyer’s loan amount or required cash contribution. Depending on the contract and lender requirements, possible paths may include:
Negotiating a different purchase price.
Having the buyer contribute additional funds if feasible and permitted.
Agreeing to another documented adjustment.
Having the borrower request a lender review supported by specific errors or relevant evidence.
Considering cancellation only when the contract or applicable law provides that right, or by mutual agreement.
A request for reconsideration does not guarantee a revised value. I’ll help you assess the options with the buyer’s agent and other transaction professionals.
What If the Appraisal Supports the Price?
That may resolve a valuation concern, but it does not mean the sale is ready to close. Financing, title, contract obligations, and other outstanding requirements still need attention.
Home Appraisal FAQs
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No. An appraisal addresses value, while a home inspection focuses on condition. An appraisal may note condition issues, but it does not replace a buyer’s inspection.
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Not necessarily. An improvement’s contribution to market value can differ from its cost. Comparable sales and the property’s overall characteristics help inform the valuation.
Check out these other helpful seller’s guides and learn more.
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Selling a Home
The Home Selling Process in San Diego
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Preparing to Sell
Preparing to List Your Home in San Diego.
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Home Appraisals
What Factors Can Affect Appraised Value?
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Seller Home Inspection
How to Prepare Your Home for Inspection.
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Home Selling Do’s and Don’ts
These practical reminders can help you.
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Why Won’t My Home Sell?
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