Appraisals
The appraiser plays a critical role in the real estate industry. They are specialist in estimating the value of real property (land, buildings, and natural resources). An appraisal (estimate of value) is usually done when a property is bought, sold, insured, taxed, condemned, assessed or mortgaged.
Today, a very high percentage of buyers finance the cost of their home. The lender wants to make sure that the property is worth the amount of money the buyer is willing to pay for it. Even many cash buyers are including in their offer an appraisal contingency. If a property does not meet or exceed the offered price, the Buyer(s) reserve the right to renegotiate the contract or cancel the offer and get their earnest money back.
A low appraisal can be a “deal killer!”
We believe that there are things a seller can do to receive top dollar for their home. First, have the home inspected by a qualified inspector before you list the property. Second, take care of any repairs that the inspector identifies, Third, prepare the home for the appraiser as if the appraiser was a buyer. The appraiser is going to evaluate, judge and ultimately set the real price! Make sure the property is ready to show!
Most appraisers are professionals that know their business. They will conduct a very thorough inspection of your property and the neighborhood where it is located. They will collect, analyze, and evaluate data from the county records, MLS and contact real estate agents that do not belong to the MLS for information on recent sales.
What can you and your real estate do if the appraisal comes in low? Research!
This is accomplished by identifying recent sales of like properties (by searching the Teton Board MLS data and calling every office that is not a member of the MLS to obtain their comparable sales). What were the prices and descriptions of these properties? Can they help increase the value of your house? Or, has there been a sale so recent that the appraiser missed it? Or a sale that somehow was not considered? It does not happen often, but it can happen.
Once you have gathered the data, look at these sales closely! Are they an exact match to your property? In all probability, they are not! Adjustments in value have to be made for age difference, square footage, acreage, location, amenities (live water, trees, adjacent to National Forest, etc.), building materials, quality of construction, number of bedrooms, bathrooms, etc.
If you believe the valuation should be higher, you need to make your case to the appraiser based on facts backed up with documentation not emotions!
And last ... remember that your real estate agent's CMA or pricing recommendation "is not" an appraisal!
