You and your buyer have agreed on a purchase price for your home. All the bank’s paperwork is ready. All they are waiting for is the appraisal to be finished.
Sales Contract
When an appraiser looks at a home, there are several factors that go into determining the homes appraised value. The contract is one of the primary indicators the appraiser uses to assign value. A home’s worth is determined by what someone else is willing to pay for it. When two parties agree on a purchase price, they are determining the homes worth.
Market Value
The county courthouse keeps a record of all real estate transactions within their county. The appraiser uses this information to locate comparable properties. Comparable properties are similar is both size, style, construction type have sold within the 6 months, and is located within 15 miles of the home that is being appraised. If available, the home appraiser will prefer to use comparables that have closed within the last month and are located 0-3 miles of the home being appraised.
Other factors appraisers use are the comparable features of the home. For instance, the size of the home in square footage, the condition and age of the home, the quality of materials used in construction, and any renovations that have been made. Normally, an appraiser needs three comparables to establish value.
In Closing
As you prepare for the day the home is being appraised, there are a few tips you can use to help the appraiser out. Make sure the home is clean and clutter free, cut the grass, trim the trees and shrubbery, and have a copy of the sales contract readily available. Be prepared to discuss any repairs and renovations with the appraiser.
Hubert Miles is the founder of Waterfront Houses USA, an internet advertising service that offers Coastal Properties For Sale and Coastal Property in the US and the Caribbean.
