Page 34 - Ultimate guide to selling you home on your own
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24. DEALING WITH
THE APPRAISAL
No matter if you got more than you Appraisers often come in with a
hoped to get for your house, or less, lower appraisal than the house is
you’re not out of the woods yet in worth. And it’s hard to argue with
terms of the value of your house. them and persuade them to change
their stance.
“Market value” in real estate is
essentially what a ready, willing, and If your appraisal comes in low, you
able buyer is willing to pay and a can:
homeowner is willing to accept.
Pretty straightforward. Contest it and provide the
appraiser with better comparable
If you and your buyer come to terms sales (i.e., “comps”). But it isn’t
on the price, and your buyer can easy or a guarantee that the
afford to pay it, that should be appraiser will amend it.
enough, right? Lower your sales price to match the
appraised amount.
Not exactly. Most buyers you will Get the buyer to agree to make up
deal with will be getting a mortgage. the difference by putting more
So, an appraisal will be necessary. money down on the deal. (Which is
(Even a cash buyer may require an often difficult or impossible for
appraisal in the terms of a deal.) many buyers to do.)
Part ways and hope that the
An appraiser is a third-party who will
come in and look at your home, write appraisal on any future deal you
a report, and give an opinion of value strike doesn’t come in low as well.
on your house. That may very well be Pro tip: When the appraiser comes to
the amount you and your buyer your house, have “comps” ready to
agreed upon or even a little bit more. give him or her for their
But, it could also “come in low.” consideration. But be careful not to
Ask any real estate agent how they be too pushy or seem like you’re
feel about appraisals and appraisers, asking them to appraise it for what
and you’ll probably see some tears you want it to appraise for. That
form in their eyes, and maybe a doesn’t go over well and could
nervous tic. actually have an opposite effect.
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