Summary: Are you planning to sell your home some time soon? Or are you looking to take advantage of financial programs that your home’s equity can help with? Regardless, it’s helpful to know what your home is worth, and an appraisal can do that. This article will discuss what all homeowners should know about having their home appraised.
Home values have risen across the nation over the past year, giving homeowners more equity in their homes. Compared to last year, home prices have increased by an average of 4.1% and now average $248,000. Considering the increase in home prices, homeowners have a chance to make more proceeds during the sale of their home.
But does it really mean that you will sell your home for more?
Here are a few considerations to keep in mind when you have your home appraised.
The Appraisal May Be Lower Than the Real Market Value
The appraised value and market value are both used when dealing with the sale of homes, but there are some differences between the two that homeowners should know about. While appraised values are determined by experts in the real estate industry, market values are driven by consumers. That means that your own could technically sell for more than what your home is appraised at.
Appraised values are based on information and the judgment of the professional appraiser doing the appraisal. On the other hand, the market value is influence by buyers. At the end of the day, your home is worth what people are willing to pay for it.
Your Appraiser Needs as Much Information as Possible
Appraisers need as much relevant information about your home as possible, especially information that is not publicly available. As such, you would be doing yourself and the appraiser a favor by providing as much relevant data about your home as possible. This will ensure that the appraiser is more accurate with the appraised value.
Foreclosures Can Have a Negative Impact on Your Home’s Appraisal
If there are foreclosed properties on your street or even next door, this could have an impact on your home’s appraisal. Some foreclosed homes could be boarded up, which does little for your home’s value. But even foreclosures that are not as obvious and happen quickly can leave a black mark on the value of the neighborhood.
These are just a few reasons to be cautious and stay informed during the home appraisal process. Find out more about Seattle home appraisal in the Sammamish Mortgage article, Reasons to Order an Appraisal.
Need a Mortgage to Buy a New Home?
If you’re in need of a home loan, Sammamish Mortgage can help. We are a mortgage company serving the Pacific Northwest region including Washington, Idaho, Colorado, and Oregon. We have been providing mortgage programs with flexible qualification criteria to borrowers since 1992. Please contact us if you have any questions or are ready to apply for a mortgage.