If you’re planning to (or already have) put your North Texas home on the market, you may be curious or even confused about home appraisals. Unfortunately, this can be one of the most frightening aspects of the home selling process. You may have already decided on a listing price, or perhaps even received an offer from a potential buyer. Who can say what your home’s worth? And did the appraiser take into account all of the effort and money you’ve put into those upgrades over the years?
Below we’ve broken down a few of the myths surrounding home appraisals.
The home inspection and appraisal are one and the same. No, they’re not. An appraiser uses comparable sales and take many things into account including the location of your home, its condition, quality, size, and other factors to determine the property’s objective market value. The home inspection on the other hand is meant to reveal anything in the home that could be a hidden issue and/or present a problem, such as water damage, cracks in the foundation, etc.
The amount your home is appraised for is what the buyer will pay. Wrong again! Basically, an appraisal is an opinion of a home’s value, provided to a lender. Should your home appraise for less than what you wanted to list it for, it isn’t the end of the world. While the lender won’t up the ante, the buyer and seller can often negotiate a price that’s reasonable for both. Should you choose to look for a buyer who can pay cash, an appraisal isn’t necessary so it’s a non-issue in this case.
The fancier your home, the higher the appraisal. Nope. Again, appraisers take into consideration the number of rooms, size, and other quantifiable aspects including the amenities in other homes in the neighborhood that buyers desire. If you’ve invested $50,000 in a home gym but it isn’t an amenity that typical buyers in the neighborhood would be looking for, it won’t increase the appraisal. It’s really that simple.
There are lots of myths about home appraisals, and it’s hard for sellers to know what’s the truth and what isn’t. If you’re in the process of putting your Flower Mound or other Dallas-area home on the market, let us help! From questions about the appraisal and home inspection process to finding the perfect buyer for your home, the dedicated real estate professionals at Team Nelson can help. Give us a call today!