What Sellers Need To Know About Appraisals

Answering three common questions about appraisals to prepare sellers.

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Are you thinking about selling your home? If so, how exciting! This process means a fresh start and new beginnings. However, before you list your property, it is important that you completely understand appraisals. An appraisal is an opinion of value, where an expert appraiser will come to your house and estimate how much it is worth. They will provide a written report based on their inspection of pertinent information that determines your home’s value. This could greatly affect the success and price point of your sale, so it is crucial to be prepared. Here are three common appraisal questions and their answers: 

1. What are appraisers looking for? They consider a wide variety of factors, like the floorplan, quality of construction, finishes, number of bedrooms, and square footage. They will compare your home to the listing to make sure the features are accurate. Also, they’ll take note of any upgrades that have been made to the house and if there were the proper permits for them, so make sure you have all of that in order beforehand. Last, they will be looking at comparable home sales in your area.

"Make sure you have a professional on your side to guide you through your appraisal process."

2. Why does an appraisal gap occur, and what should I do if it happens? Home prices are rising rapidly, which increases the likelihood of appraisal gaps. That happens when the value the appraiser provides is less than the agreed-upon price. There are several things you can do if this happens, so make sure you have a professional on your side to guide you through your options.

3. Should I get a pre-appraisal done? This is when sellers get an appraiser to look at their home before they list. I understand why people might think to do this, but I wouldn’t recommend it. First, the appraisal is normally seen as the buyer’s responsibility since it is typically a requirement for them to get a loan. Also, some lenders won’t even accept the appraisal you get because they’ll want it to be done by someone they deem as an impartial third party. Selling your home can be expensive, so you don’t want to pay for things that are unnecessary.

Appraisals can be a confusing part of the process for many people, so don’t hesitate to ask me any questions that you have. Call or email me anytime; I am here to be your real estate resource. I look forward to helping you through the selling process!

How To Sell a Home That Needs Repairs

Three things you should do to successfully sell a fixer-upper.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

The selling process is already difficult enough, but when you add noticeable problems with the property into the equation, it can make the home sale even more complicated. Inventory is now increasing, and buyers have more options to choose from. Your home, which needs repairs, won’t likely be their first choice, and those who are interested in purchasing may make an offer that’s less than what you wanted to sell it for.

Selling a house with major issues takes a lot of work, and there’s never enough time to do it. The longer the home stays with you, the more expensive the costs of repairs and maintenance will be. If you don’t act soon, that property could end up becoming a liability. Fortunately, there are ways to reach the closing table and make a profit. To sell a fixer-upper, here are three things you should do:

1. Get a home inspection. You know the property is in a bad shape, but you’re not exactly sure to what extent. This is where a professional can help. A home inspector will locate the problems and give you a complete rundown of them. Once you’ve identified what has to be fixed, you can evaluate whether you can afford the repairs and replacements, or if you’ll just sell as-is. Also, remember that disclosing the issues of your home to would-be buyers is required by the law. You want to be as transparent as possible to avoid any legal repercussions later.

2. Consider selling to an investor or a bargain hunter. The worse the home’s condition is, the bigger the pool of investment buyers will be. Real estate investors don’t want to live in that house. They want to repair and upgrade it so they can sell and earn a profit. Typically, they will pay with cash and will buy the home as-is. Bargain hunters, on the other hand, are in search of their dream homes. They are willing to put in the elbow grease needed to make a property livable and will overlook a few flaws, as long as they love the location.

"The worse the home’s condition is, the bigger the pool of investment buyers will be."

3. Be realistic with your price. Whatever market we’re in, pricing your home correctly will always be critical. This is especially true for homes that are not in the best condition. You have to set a reasonable price, one that is based on research and makes sense for the market. The best way to do this is by working with a real estate professional. An experienced agent can use their resources and connections to ensure that you get the best possible deal for your sale. 

It’s possible to sell a home that requires work. If you follow these tips, you will confidently get to closing. For more tips on how to successfully sell a fixer-upper, call or email me. I’m happy to be your real estate consultant!