What is an appraisal & how does it impact the real estate transaction?

It is very important to know the value of your home whenever it is time to sell your house, when you are going to pay your taxes and when you need a mortgage. When you are the one buying a house you also need to know the value to compare with what the seller is asking and to make an offer. An appraiser must come to the house to inspect it and make it valuable. This is where the appraisal comes in.

 

It is possible that the owner likes window air conditioning units, but the appraiser will be deducting value of the house because there isn’t central heat and air. For example, if you live in a warm area, the use of air conditioning is more valuable than someone who lives in a colder area. The appraiser will look at how old the house is and how it was made. Some of the factors in determining the home values will be the number and size of the bathrooms and closets, if it has or doesn’t have a garage, an attic or basement. The appraiser will also look at the outdoor areas and the location in comparison with the neighbors. Another factor that will also impact the value of your home is If there are many homes for sale and the rate they are selling. If there are any new construction in your area can increase the value of your home. There are aspects of your home than you can improve easily and quickly that will help you make a difference to the appraised value:

  • Clean up. It is more likely that an appraiser can have a better impression if your home is clean and organized.

 

 

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  • Improve appeal. Painting your home or landscaping the yard will help you increase the appeal of your home. If it is too expensive you can do the little things like mowing the lawn, cleaning the outside of the house and just remove your clutter will help you. It doesn’t have to be expensive.

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  • List your updates. If you keep track of the improvements you have done will help in the appraiser’s job, and will also help to point out certain things they don’t notice. New furniture might not qualify but a new carpet would.

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  • Provide comparable examples. There are many factors that will determine the value of your home, but the most important one is how much are the neighbor’s home selling for. If you give your appraisal some examples, it will save him the time and effort which can then lead to him valuing your property a little bit higher.

 

  • This is a form of appraisal considers the value of your home for tax purposes. The assessment is made with a computer and follows guidelines without the capacity to make a decision based on the improvements or condition on the home.

 

 

When the appraiser is there, make sure you give him enough space to work, and be prepared to answer any questions. When deciding who will pay for the appraisal, you can negotiate, which is most likely made by the local market.

What the buyer is willing to pay is going to be the true value of the home. It is a negotiable term in the contract but will depends on the market, the purchase price and other factors, sometimes the buyer pays for it and sometimes the seller. When selling your home, it is likely that you will pay for the assessment, since it is in your best interest. This is because you can choose the appraisal and have him work to your best interest. If the buyer decides to have his own appraisal you can have a counter balance to his appraisal. It is recommended that you have an appraisal before placing your home on the market. This way you are more prepared and realize when you have a lower offer.

 

© 2021 · ADRIAN GARZA-DELGADO
TREC LIC. NO. 638099

© 2021 ADRIAN GARZA-DELGADO
TREC LIC. NO. 638099

19179 BLANCO RD. SUITE 105-445
SAN ANTONIO TX 78258 USA

19179 BLANCO RD. SUITE 105-445
SAN ANTONIO TX 78258 USA

Phone: 210-446-4455

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