PRICING YOUR HOME
Appraisals vs Competitive Market Analysis
A Competitive Market Analysis is subtly different from an Appraisal.
When I come to your home, we will be going over a competitive market analysis of your home. This entails searching the Multiple Listing Service (MLS) for sales that have taken place as close to your home as possible. I find sales that have closed in the last 6 months and perhaps as old as 12 months. Those properties I choose will be of similar style, square footage, and as close to your amenities as possible. Of course, no home will be an exact match. The reason for finding these is to learn what
buyers have been willing to pay for homes like yours.
When setting a value on your home, we consider many issues; time of year, your time frame, condition of your home and other areas of concern.
An Appraisal will be done on your home after your home has sold but before the home has closed. The appraisal is paid for by the buyer of the home. This is an investigation by the buyer’s mortgage company to ensure the funds being loaned to the buyer are a good risk and does not expose the mortgage company to a loss in the event the buyer fails to make payments.
When the appraiser comes to the home, they will look to make sure the home is in good condition and look for risk of taking the home back on foreclosure and perhaps needing to do extensive work for resale. The appraiser does have leeway in determining if an issue may need to be repaired prior to closing. If that happens, the issue is often negotiated between the buyer and seller. If you cannot come to terms, the purchase agreement would be cancelled.
The appraiser also goes to the Multiple Listing Service to find comparable properties. The difference is they will do a give-and-take based on what those homes have that are different than your home. As an example, you have a fireplace and a comparable home does not, they will make an adjustment in the price of the comparable. After adjustments are made to all comparable properties the average must be in the same price range as your home. If not, we may end up with a “low appraisal”.
In the event of a low appraisal, there is an appeal process. This would be providing the appraiser with a comparable we feel more closely matches your home. The appraiser will have the ultimate say as to whether they agree with our assessment. The key is pricing the home to satisfy not only a buyer, but the appraiser as well.
When I come to your home, we will be going over a competitive market analysis of your home. This entails searching the Multiple Listing Service (MLS) for sales that have taken place as close to your home as possible. I find sales that have closed in the last 6 months and perhaps as old as 12 months. Those properties I choose will be of similar style, square footage, and as close to your amenities as possible. Of course, no home will be an exact match. The reason for finding these is to learn what
buyers have been willing to pay for homes like yours.
When setting a value on your home, we consider many issues; time of year, your time frame, condition of your home and other areas of concern.
An Appraisal will be done on your home after your home has sold but before the home has closed. The appraisal is paid for by the buyer of the home. This is an investigation by the buyer’s mortgage company to ensure the funds being loaned to the buyer are a good risk and does not expose the mortgage company to a loss in the event the buyer fails to make payments.
When the appraiser comes to the home, they will look to make sure the home is in good condition and look for risk of taking the home back on foreclosure and perhaps needing to do extensive work for resale. The appraiser does have leeway in determining if an issue may need to be repaired prior to closing. If that happens, the issue is often negotiated between the buyer and seller. If you cannot come to terms, the purchase agreement would be cancelled.
The appraiser also goes to the Multiple Listing Service to find comparable properties. The difference is they will do a give-and-take based on what those homes have that are different than your home. As an example, you have a fireplace and a comparable home does not, they will make an adjustment in the price of the comparable. After adjustments are made to all comparable properties the average must be in the same price range as your home. If not, we may end up with a “low appraisal”.
In the event of a low appraisal, there is an appeal process. This would be providing the appraiser with a comparable we feel more closely matches your home. The appraiser will have the ultimate say as to whether they agree with our assessment. The key is pricing the home to satisfy not only a buyer, but the appraiser as well.
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