Appraisals For Your Long Island Home - What You Need To Know
An appraisal isn't exact science. One appraiser will use the most recent area sale comparisons while another will use home sales in your area from six months ago or later! The end result will garner you 2 different home value opinions.
Appraisals are not the same as Comparable Market Analysis that I do for homeowners. I always use the latest home sales and under contract. This helps me to help my homeowners understand the market by showing them where the market has been and where it's going.
Apraisals do not factor in your personal issues - If you need to sell your home quickly due to a job transfer, job loss, death of a spouse or significant other, this will affect the amount of money you will accept to complete your transaction in the time frame you need. An appraiser does not consider this factor. A real estate agent does.
When you sell your home, the buyer's bank will send in a bank appraiser. They will take the most recent home sales and try to find a few homes that are comparable to yours. If they can't, then they take a higher priced home that is comparable to yours and will make monetary deductions to that home that your home doesn't have when compared to the higher priced home that recently sold.
For example, if you have a 1 car garage and the higher sold home has a 2 car garage, then the bank appraiser will deduct about $10,000 from the sold price of the higher priced home. They keep making these deductions for # of bedrooms, fireplaces, finished basements, in-ground pools, until they come to a final price. This price becomes what they feel your home is worth and report it back to the buyer's bank.
More times than not, the appraisals come in fine. When it's not in your favor, then you can either walk away from the deal or sell the home to the buyer at the price the bank appraiser came in with. That is a decision you cannot make lightly.
Appraisals are not the same as Comparable Market Analysis that I do for homeowners. I always use the latest home sales and under contract. This helps me to help my homeowners understand the market by showing them where the market has been and where it's going.
Apraisals do not factor in your personal issues - If you need to sell your home quickly due to a job transfer, job loss, death of a spouse or significant other, this will affect the amount of money you will accept to complete your transaction in the time frame you need. An appraiser does not consider this factor. A real estate agent does.
When you sell your home, the buyer's bank will send in a bank appraiser. They will take the most recent home sales and try to find a few homes that are comparable to yours. If they can't, then they take a higher priced home that is comparable to yours and will make monetary deductions to that home that your home doesn't have when compared to the higher priced home that recently sold.
For example, if you have a 1 car garage and the higher sold home has a 2 car garage, then the bank appraiser will deduct about $10,000 from the sold price of the higher priced home. They keep making these deductions for # of bedrooms, fireplaces, finished basements, in-ground pools, until they come to a final price. This price becomes what they feel your home is worth and report it back to the buyer's bank.
More times than not, the appraisals come in fine. When it's not in your favor, then you can either walk away from the deal or sell the home to the buyer at the price the bank appraiser came in with. That is a decision you cannot make lightly.
Jackie Connelly Fornuff, CENTURY 21 AA Realty. All rights reserved. All content
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