Getting a home appraised is one of the more nerve-wracking steps in the home-selling process. Mortgage lenders require appraisals because they want to protect their investment, but if a home appraises for less than the selling price, chances are the contract will fall through. If you’re waiting for an appraisal on Galax Real Estate for sale, it can help to know what to expect.
What Does An Appraisal Involve?
To determine the fair market value of a property, appraisers consider the age of the building and the condition of the roof and gutters, the siding, the foundation, and other structural features. They also evaluate the home’s location and the selling price of similar homes in the area. In addition, appraisers assess the interior of the home, looking at things like square footage, appliances, safety features, and code compliance.
How Long Does An Appraisal Take?
An appraiser’s visit takes anywhere from fifteen minutes to several hours, depending on the size and condition of the property. After looking at the home, the appraiser will do some research on comparable sales. In general, the lender gets the results of the appraisal in a week to ten days.
Why Do Homes Fail To Appraise?
There are several common reasons why appraisals come back under the asking price. For one thing, the home may have been priced too high to begin with. This can happen when sellers don’t get good advice from their real estate agents or when buyers compete and drive up the price.
Another reason is an issue the seller was not aware of, like a code violation in a renovation or addition to the property. Occasionally, a low appraisal might be due to the appraiser’s lack of experience in the area.
What To Do If A Home Appraises Too Low?
Buyers and sellers have a few options if they want to move forward on the sale. First, they can renegotiate the price. If that’s not a workable option, buyers can try a different lender, who will order a new appraisal. Sellers may also be able to appeal an appraisal by providing evidence of comparable sales that the appraiser did not consider.
According to Galax Real Estate agents, sellers can increase their chances of getting a good appraisal by setting a fair price that is in line with what similar houses are selling for. Other tips include making all needed repairs and giving the house a deep cleaning before the appraiser’s visit.
Contact FoxFire Realty today and we’ll advise you on the right price to list your home for a smooth transaction!