Why Appraisal Matters when it comes to Selling a Property
A home appraisal forms an inherent component of the transaction whenever you buy or sell a property or even refinance a home loan. In simple terms, an appraisal is a commonly accepted method of gauging the true value of a house. This is an unbiased professional opinion that takes the existing condition, location and other features of the house into account.
Home appraisals are initiated by banks or other mortgage lenders to protect their interests before approving the loan for purchasing a house. Since the house itself forms the collateral for the mortgage, they want to ensure that the home’s contract price is in tune with its actual market value and the buyer is not over-borrowing against the house.
A real estate appraisal is performed by a qualified appraiser who should be licensed or certified and be familiar with the local area. He will take into account different factors like the location of the property, its square footage, age of the home, number of bedrooms, number of bathrooms, amenities, functionality of the floor plan, quality of finishes and so on.
The appraiser will then evaluate recent sales data of similar homes in the area and use it to assign a fair value to your property. This value will be assigned after factoring in adjustments for variations between the homes.
An appraisal is the bank’s way of covering its investment in case the buyer defaults pn the loan. This is why they will normally decline to issue a loan for more than the appraised value. In fact, real-estate appraisals are responsible for holding back a majority of the home sales.
So, when your home appraises for less than your asking price, the buyer is facing a loan rejection from the bank and has the following options
• Try to renegotiate with you for a lower purchase price
• Bridge the difference in mortgage amount by paying more down payment from his own pocket
• Back out from the home purchase transaction
It’s obvious that in case of a bad appraisal, the buyer will always try the top option first and attempt to bring the purchase price in line with the appraisal value. And you can refuse to concede ground at your own peril!
Therefore, home owners who want to sell home fast Dallas, Texas often arrange a home appraisal on their own and keep their asking price in tune with the appraisal value. This appraisal will also come in handy for contesting a lower appraisal value assessed by the mortgage lender’s appraiser. But ensure that you use the services of a certified appraiser only.
It is also advisable to repair your house and maintain it in a good condition as this will help in fetching a better appraisal value and thus ensure that you can sell home fast Dallas, Texas!
Stephen Harbin is a leading writer on real estate management. He specializes in sell home fast Dallas and helping first time homebuyers sell their houses in Dallas, TX. Stephen is a leading author on the home market in Dallas. To get more useful information on how to sell home cash Dallas, visit us at moneybugbuyshouses.com.