Selling your home can feel like an overwhelming task. As Realtors(r), we walk our clients through each step of the way. Not knowing who you’re working with can be nerve-racking, and we can recommend trustworthy appraisers to get an evaluation of your property. We’d like to share some of our knowledge about appraisals with you and offer you a complimentary report specific to your neighborhood that we have created.
What is an appraisal?
An appraisal is an opinion of the value of your home based on what similar homes in your area have recently sold for. Since getting an appraisal isn’t an exact science, if you feel your home has been priced too low, you have the option of getting a second one done. For example, one appraiser may count a recent sale but the other may think it was too long ago to add into the equation. The result of this would be two different values for your home.
Appraisals can also be used to determine how much to insure your home for. In addition, appraisals are used to figure out property taxes. So, although an appraisal for a loan estimates today’s market value, one for insurance purposes is used to determine what it would cost to rebuild your home with the associated costs of today.
Comparative Market Analysis
Keep in mind that appraisals are different from CMAs (Comparative Market Analysis). Using our knowledge and expertise, we compile a CMA for our clients to determine how much their home will sell for within a certain period of time. We would love the opportunity to do the same for you.
Shifting markets and the personal side of things
Note that home prices change and appraised values will shift with market changes. If your home is appraised for $200,000 today, that could change in three months when you list it for sale depending on the performance of the market. Unfortunately, appraisals don’t take life changing circumstances into account. Job loss or transfer is not considered when coming up with the value of your home.