When you sell a property, appraisers use real estate comps (comparable market sales) of local properties sold within the last six months to value the property. With today’s rapidly rising buyer’s market, six-month-old information is ancient history. Appraised value does not always equal the true market value, or what the home will sell for on the open market. Given that, you want to avoid low appraisals that will negatively affect your price. For the next two days let’s look at some tips to help combat those low appraisals.
Avoiding Low Appraisals
- Hire your own appraiser before the sale. Then ask your buyer’s or lender’s appraiser to review your appraisal.
- Retain the option to approve your buyer’s mortgage lender. Make sure that the buyer doesn’t use a lender with a history of deliberately underestimating property values.
InvestorCompsOnline and the real estate comps information you gather will help you in choosing which property(ies) you want appraised. Be sure to take a look back tomorrow and we will go over two more tips that I believe will help you get the right appraisal every time.