Real Estate
let’s talk : APPRAISALS- What to look for!
| Good Morning! Okay let’s do a quick recap of the last month. We looked at homes. We put a home under contract. We had a home inspection. We negotiated with the seller based on the home inspection findings. Most recently, we received our appraisal. Let’s spend this week talking about that. So, as we do, let’s talk Real Estate, let’s talk HOME APPRAISALS – WHAT TO LOOK FOR… Let’s focus on how to read an appraisal report and what to look for! #1 Confirm that YOUR property facts are correct – Check for a correct address – Check for correct square footage – Check that the number of bedrooms and bathrooms are correct ALL of these factors can affect the value of your home. Believe it or not I have seen them listed incorrectly in multiple appraisals. #2 Check the VALUE that your home appraised for – Are you shocked by the value? – Did it appraise for what you expected? #3 Check your COMPS Most of the time, appraisers will use the Sales Comparison Approach where they compare your home to similar recent sales. When using the Sales Comparison Approach, the value of your home is based off of recently sales of similar properties within close proximity of your home. – Do the comps make sense? – How close are they to your property? – Were they sold in the last 180 days? Comparables should be some of the more recent sales. – Are they in the same school district? – Are they in the same “type” of location? I.e. if your house is not located on a busy main road, the comps that are used should not be located on a main road either. LOCATION plays a huge role in the home value. – Do the comps used have similar square footage? – Do they have the same number of bedrooms and bathrooms? If not, were the appropriate value adjustments taken into account? Talk with your agent to make sure that the comps used in your Appraisal report make sense! If it the home you are purchasing is more unique or new construction and there are no true comparables out there, your appraiser may use the Cost Approach Method to determine the value of your home. If you are purchasing an investment property, the appraiser may use the Income Approach. Should we break these approaches down further in a future LTRE?! #4 Follow-up (If necessary) If you do not agree with the value that the appraiser gave the home, then you can dispute it. Send your reasons for the dispute to your lender and they can express your concerns with the appraiser and ask them to reevaluate the home. I personally had to do this with a Project Philadelphia when the property facts stated were incorrect, and the comparables used were outdated. |
| Happy Wednesday! & Stay Healthy! Erin p.s. LET’S CONNECT ON SOCIAL MEDIA Blog: www.erinkelly.org Instagram: @erin.lindsey.kelly Facebook Page: https://www.facebook.com/ErinHomeandRE Twitter: @ErinKellyHomes LinkedIn: https://www.linkedin.com/in/erinlindseykelly/ Pinterest: https://www.pinterest.com/erinhomeandrealestate/ LinkTree:https://linktr.ee/erin.home.and.realestate p.p.s. If you are comfortable would you mind leaving me a review?! Would love to know how you are liking this blog or if you have enjoyed working together! Google Business Page Zillow Business PageNEW TO OUR EMAILS?! SUBSCRIBE HERE OR, no longer wish to receive these emails?! Sad to see you go, but you can unsubscribe at the bottom of the page All data and information provided in this email is for informational purposes only. This email makes no representations as to accuracy, completeness, suitability, or validity of any information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Opinions stated here are my own and not the views of eXp Realty. Data Sources for Today’s Content: Me – This is based on my own personal experiences & opinions |
Wow such valuable information to know. When it comes to Real Estate “things” we leave it to the professionals to do what they know to do.Yet based on your findings it is always important to Due Your Due Diligence.. I will be well armed with information moving forward.