Most home sales involve appraisals. An appraiser determines your home’s value based on its location, sales in the area and the home’s condition and characteristics. These are reasons you may work with a property appraiser on the sale of your home.
Mortgage Companies Require Appraisals
Mortgage companies focus on reducing their risk while increasing their profits. One way they reduce their risk is by ensuring that your property is worth more than your loan value. This way, if they need to repossess the home, they can recover their losses by reselling it.
Today, mortgage companies largely determine home prices because no matter what offer is made on your home, if the appraisal comes back lower, the bank will not fund a loan for the offer amount. Instead, you have to renegotiate to lower the price of the home. However, working with real estate appraisers Dallas TX can save you time and money in the long term.
Pre-Listing Appraisals Provide Valuable Information
In today’s real estate market, pre-listing appraisals have become commonplace. First, they help you determine the price you should charge for your home. These reports can also identify areas where you can improve your property or make repairs that may increase your home’s value before you sell. Although your buyer’s lender will typically require a separate appraisal, you can work with the same appraiser and may get a discount.
They Set Prices Based on Actual Data
You probably have an emotional connection to your home, which may cause you to artificially inflate the asking price. Your real estate agent is working for you, and though they can suggest different prices based on comparable home sales and listings in the neighborhood, they cannot tell you exactly what your home is valued at, but a real estate appraiser can. These individuals are trained to determine your home’s value based on concrete evidence.
If you are preparing to sell a home, whether you are the seller or a real estate agent, consider working with a real estate appraiser.