Many homeowners are now paying to have an appraisal performed on their home before putting it on the market. Alan Hummel, chief appraiser for Forsythe Appraisals LLC of St. Paul, Minn. says that many homeowners are willing to pay the cost upfront.
Presale appraisals for the firm increased during the first quarter, said Hummel, as the residential real estate market has begun to see cooling in many areas and an increase in inventory.
Although many real estate agents conduct their own market analysis to price a property, the appraiser is able to come up with an independent, unbiased opinion to price the property, said Hummel. If a property isn't getting any interest, an agent might encourage the client to have an appraisal performed to make sure the home is priced appropriately.
Now, you've got to be competitive and you have to know that the offers coming in are reasonable, said Hummel.
An appraisal looks at a property from a visual standpoint. It takes into account everything from cracking paint to the proximity to schools and shopping.
We are trying to react the way a typical purchaser would, said Hummel.
The appraiser will look at the health of the local real estate market, which gives a homeowner a personalized expectation for selling the home. The homeowner must remember that the market can vary from area to area -- national news about real estate slow downs may or may not apply, said Hummel.
The appraisal report will include the details about the home, a description of the neighborhood and a side-by-side comparison of similar homes in the area. It will evaluate the area's real estate market, make notations of any major problems that affect the property value and estimate the time it will take to sell the home.
The appraisal is a opinion of the home's value. It is based on similar homes in the area that have been sold recently. It is not the same thing as a home inspection. It deals with the value, the inspection deals with the condition.
You pay for the appraisal when you purchase a home. You should request a copy from your lender, you have a federal right to receive it. When you have the house appraised before you put it on the market, you simply pay the appraiser and receive the report.
It is wise to have your home appraised before putting it up for sale. It will help you to accurately price your home. This can help you avoid problems later. You could find that you priced your home for too much or too little.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
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