It is important for both buyers and sellers of real estate to understand the importance of an appraisal. Let’s face it, the real estate market has been nothing if not erratic over the last few years and knowing exactly what a home is valued at is trickier than ever. The clear answer to value is that a home is only worth what someone is willing to pay for it, but when you are trying to finance a home the bank will only lend based on what it sees the value of the home being.
Why is it important for sellers to have an appraisal done on their property? An appraisal will let a seller know realistically what he can expect to get for his home.
IS the appraisal always right? I don’t think so. The second home resort market seems to be a little more difficult to compare apples to apples. The past few years, sales have been skewed by short sales and people who may be heading into foreclosure. If these are the only properties that have sold in a particular neighborhood, then it is hard to get a true comparable if nothing else has sold in the neighborhood. The banks rely on appraisals, so sometimes it is important to have some backup data to substantiate a higher price if there is a dispute on the appraisal. If the property doesn’t appraise up to the purchase price, the Buyer and Seller have two choices: one-they can either lower the price to accommodate the appraisal or two- the Seller may choose to bring money to the table.
Foreclosures and short sales have skewed the comps in many areas, which can make placing an appropriate value difficult. However, preparation is key when trying to sell real estate in today’s market, where knowing what your local fair market value is of the essence. An appraisal helps to avoid the what-ifs and place everyone involved in the real estate transaction exactly where they need to be, in reality.
For more information about property in Summit County, Colorado serving Breckenridge, Frisco, Keystone, Copper Mountain, Silverthorne or Dillon contact Leah Baxter www.leahbaxter.com or 970-389-6367.
Sourced from: Kinetic Content Library
