Are You a Home Seller? Read All about Home Evaluations Here

If you’re interested in selling a residential property at a profit, you’ll need a home evaluation to determine the correct pricing. You do want to earn, but you also don’t want to shortchange potential buyers. Here’s what you need to know about the process.

Why a Home Evaluation Matters

You can see more than just four walls and a door when you look around your house. You see your child’s first steps, your 10th-anniversary celebration, and the place where your family made the memories of a lifetime. To you, the place is invaluable.

But is it? What is the value of your home? Home appraisals play a crucial role in the real estate world; when it’s time to upgrade your home or start a more prominent family, you want to sell your home for the best price and not overpay.

An appraisal does more than help you determine the value of your home; hiring an appraiser gives you direct contact with someone who can help you avoid problems in the future. As a bank requirement, appraisals are a great way to give everyone peace of mind and ensure that everyone gets a fair deal.

Before putting your home up for sale, you should find out what it is worth via an appraisal if you are not already familiar with the going rates. A helpful site to search for appraisers is the Appraisal Institute, where you can find appraisers in your area by searching their directory. 

Make sure the appraiser you hire has professional credentials, and this helps ensure that the price you are willing to sell your home for is reasonable. The fee for an appraisal typically ranges between $300 and $600, and it takes about two hours to complete.

The Difference between a Home Evaluation and Inspection

What else should you know about getting an appraisal? 

• The appraisal uses the sales prices of comparable houses in the neighborhood to estimate how much your home is worth. On the other hand, an inspection is used to find defects your house may have to determine whether the current owners can do any upgrades in preparation for sale.

Finally, an appraisal is not final. If you disagree with the appraiser’s value for your house, you can try to change it.

When to Start a Home Evaluation

A home evaluation is a vital part of the buying process, and you should be prepared for it.

A lender will base the loan amount on the appraised value rather than the market value for mortgage purposes. For example, a house might go on the market for $300,000, but an offer comes in for $250,000. If the seller agrees to their request, both parties believe they will receive around $350,000.

What the lender will look at is the appraised value of a house. Through an appraisal, they will try to determine what a home is worth under different scenarios, including what it is worth if sold today and how much it could sell for in an extreme situation where the owner can’t sell it.

An appraiser determines value by looking at important aspects of a house, such as its square footage and overall condition. Statistical data such as the number of bathrooms or bedrooms can significantly influence an appraisal. The appraiser will compare your property to similar properties in your area.

Conclusion

If all this seems overwhelming, you can start canvassing information about the houses in your neighborhood for a ballpark figure. Or, you can also enlist a real estate agent to do the work for you. They can determine the appropriate value, but they also look for potential buyers. Remember, they charge a percentage for their services, so be sure to get that in writing.

Find the right agent for a home evaluation in Folsom at Folsom Realty! Our staff puts you first, whether buying or selling a home. Contact us now for your assessment!