RSSReal Estate: Little Known Solutions For Avoiding Low Appraisals
Jan 02
Las Vegas home selling, Las Vegas, nevada, real estate, residential No Comments
A problem that sometimes plagues home sales in a weak market is the appraisal comes in too low. As a result deals fall through because banks won’t loan the amount buyers need. Or the buyer has to put more down and can’t. Or the seller is asked to take less and won’t. So after months of waiting for a buyer to come along how can sellers avoid the problem of low appraisals? Let’s look at some practical ways to prevent this from becoming a deal killer.
Typically appraisers select three recently sold properties that are similar to yours to use as a point of reference when determining the value of your home. Taking into account things like age and condition, plus size and location of the so called “comps”. While also factoring in any special issues that might lower the sales price of the comps – such as being sold out of foreclosure.
Also the rules have changed and lenders and mortgage brokers can no longer select the appraiser. Because it was felt sometimes the appraiser was influenced to bring in whatever valuation was needed to put the deal together. Which may have produced inflated property values which lead to the real estate problems we are trying to work through.
So a reason for a low appraisal is the appraise isn’t familiar with the neighborhood.
Another cause could is a stagnant housing market means there are fewer sales. Fewer sales means fewer suitable comps. Adding an element of uncertainty to the process.
A third reason is simple human error. Something was overlooked that resulted in wrong comps being selected.
So what can you do to avert such a crisis? Well it’s up to you to insure your home isn’t undervalued. Yes the appraisal is technically just one person’s opinion of the value of your home. But it’s one that carries a lot of weight. Problem is there’s nothing in the process that guarantees the appraisal comes up with an accurate valuation. Here’s some things you can do however.
First thing is to dig up comps yourself with the help of your real estate agent. After you find recent comparable sales in your area you want to learn if there were any unusual circumstances behind the sales such as a foreclosure, divorce, lots of deferred maintenance etc. Offer this info to the appraiser. Anything that will make their job easier is appreciated and will definitely help you get a more accurate appraisal.
Curb appeal can make a good impression when the appraiser visits. Maybe not a lot but every little bit helps. So treat this situation like an open house and have your house ready as if it were on display.
Don’t be afraid to highlight the special selling points of your property. Be that landscaping, renovations made or upgrades like new windows or deck or patio. Give the list of these to the appraiser involved to insure they don’t miss them. They’re busy. Yours isn’t the only house they are appraising. Any help will be appreciated.
Double check the facts in the final report. There’s no problem asking to see the appraisers report to see if there are any mistakes like the square footage area of the house, size of the lot, number of bathrooms and so forth. If such mistakes are found a do over is in order.
A faltering market lends itself to problems like low appraisals. Not that you need anything else working against selling your home. But it’s wise to do what you can to head this problem off – before it strikes. Yes real estate appraisals are somewhat subjective. Yes they involve judgements. But you can do things to make sure any appraisal done reflects a fair valuation of your property.
Sadly, the Las Vegas Nevada real estate market is proof that hot real estate markets don’t sizzle forever. Now even Las Vegas new homes sales are affected. Not to mention what the turmoil has done to condo sales. Leading site, TakeMeHomeToVegas.com can help you stay on top of developments in the volatile Las Vegas market.
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