June 25, 2013 5:54 am
Are Appraisals Accurate?
What if I sell my house and the Home Appraisal comes in too low?
There is a shortage of homes for sale, so theoretically the sales prices should be increasing, right? Once we're under contract, the buyer's lender will order an Appraisal. The Appraiser will look at recently sold comparable homes to help determine their perception of the property's value.
As this article indicates, Appraisals are still throwing a wrench in some home deals - sometimes forcing sellers to lower their price, buyers to bring money to the closing table or the two sides to meet somewhere in between and renegotiate the contract.
There are fewer distressed properties (short sales & foreclosures) & that's awesome for traditional sellers hoping that their home will be appraised at its agreed upon sales price. But at the same time, an undersupply of available homes has prompted bidding wars above list price, a price that isn't necessarily justified by an appraisal.
What do you do if your Appraisal comes back short? Can a Rebuttal help or is it too little too late? Realtors & Appraisers can sometimes provide assistance, but it's always better to proactive in this market.
What is your home worth? Many sellers are getting a Pre-Listing Appraisal to understand the values before putting the home on the market. Would you be willing to spend $500 to possibly save $25,000? Makes lots of "cents" to me!!
Lisa Harris, Realtor©
Official Realtor© for the Atlanta Falcons