Pricing Your Home
Pricing an Asheville NC Home
Many people may have a rough idea of how much their house should be worth based on what other houses in their area have sold for. However you should keep in mind that each and every property is unique and therefore so should be the pricing. Pricing a home can be stressful and an appraiser can offset this by making sure you have accounted for your homes full value. The buyers will have to have a loan and most lenders actually require an appraisel before approval of the loan. The appraiser relies on his or her general expertise and specific research to arrive at an opinion of value.
The Appraiser’s Mission
The appraiser's primary mission is to protect the lender. No lender enjoy's owning overpriced property and the appraiser is one way to protect against this from happening. That's why the appraisal takes place before the lender grants final approval of the buyer's loan.
What an Appraiser Looks At
Appraisers weigh the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors. Dirty dishes and dusty dressers are of little technical concern for an appraiser. They are more interested in signs of neglect such as chipped paint, cracked walls, or damaged flooring. If the buyer is applying for a mortgage that will be insured by the Federal Housing Administration (FHA), the appraiser must survey the physical condition of the home and disclose potential problems to the buyer. No such obligation exists for non-FHA mortgages.
Appraisal Versus Home Inspection
Of course an appraisal is not a substitute for a professional home inspection. Although they do look at similar items, they are motivated by different factors and thus will be reporting in different ways. The appraiser formulates an opinion of the property's value for the lender, while the inspector educates the buyer about the condition of the home and its major components.
There are times when an appraisel will come in lower than the asking price. When this happens the seller may reduce the price or negotiate for repairs to be done to bring the value to a more reasonable level. New evidence brought to the appraiser can also, in very rare occasions, make them reconsider their initial accessment of the homes overall value.
Get Help Pricing Your Asheville NC Home
Call us at (828)-215-9064 or contact Green Mountain Realty to learn more about pricing your home.