Congratulations! You just got a better than full price offer on your home for sale after having multiple offers. You have gotten through Attorney Review and Home Inspection and the buyer is getting their mortgage approval. Everything is moving smoothly or so you think. The buyer’s mortgage company sends out an appraiser and this is where things can fall apart on you.
How Does The Appraiser Come Up With Selling Price?
They do this with a physical inspection of the home which includes:
- Takes pictures
- Measures the home and the lot
- considers remodeling upgrades
- Looks at the neighborhood and the location
Appraisers strongly consider sold comps in the area as well but the entire process is much more scientific. This report considers nearby sold homes within the past 3 months, pending sales, and currently listed homes.
Other important factors include the type of loan. Each loan has its own requirements for approving and funding the loan. A Conventional loan tends to get approved with few repairs or none. FHA and VA loans have stricter regulations so there are typically some repairs required.
What if My House Doesn’t Appraise For The Full Price?
You have a few options to select:
- Reduce the selling price to the appraised price
- Appeal the appraisal
- Cancel the contract; but if the appraisal was for FHA loan the appraised price will stand for six months
- Hope that the buyer bring the difference to closing
How to Appraise For Top Dollar
- Make sure the home looks as nice as possible when the appraiser comes.
- Prepare a list of any remodeling done, any upgrades and newly purchased appliances.
- Be sure you have taken care of all repairs that you agent suggests prior to the appraisal
Selection of Homes For Sale
All statistics are gathered from the Buffalo Niagara Association of REALTORS®.
For more information – call our J. Philip Real Estate Team at: (716) 650-0051
Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call us at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home.
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