Selling your home isn’t easy. When you finally get the nerve to say goodbye to a place where you’ve created so many memories, a stranger comes in and puts a value on it. And oftentimes, this appraisal can make or break the sale.
While the appraisal process can be one of the scariest and most stressful aspects of selling your home, it can also be quite confusing as well, which is why we’re here. Below we’re compiling some of the common myths that surround a home appraisal. Whether you’re getting ready to sell your house or have an appraisal scheduled, read on to learn what you, as a seller, can expect from the appraisal process.
Myth #1: A Home Appraisal Is Equivalent to a Home Inspection
Busted! Both the home appraisal and home inspection are used to determine your property’s condition, which helps the buyer make an informed decision. The property will be inspected during both of these appointments, but that’s the only similarity that a home inspection and a home appraisal have in common. The purpose of the home inspection is to uncover anything problematic or potentially problematic. The purpose of a home appraisal is to determine the home’s market value based on the home’s condition.
Myth #2: Amenities Are Valued Equally
Busted! Let’s compare two houses that have the same square footage. One house has a detached two-car garage, while the other house converted the garage into a home gym. While both houses have a detached garage, you can’t make an apples-to-apples comparison. Why? It all depends on the buyer. People specifically look for homes with a garage so they can use it like a typical garage, which might make the appraiser assign a higher value to it.
Myth #3: The Appraisal Will Match What the Buyer Will Pay
Busted! An appraisal represents an opinion about the value of the home and has no definitive bearing on what the buyer will pay or what you, as the seller, should accept. In fact, a buyer can’t hire an appraiser or even speak to them about the house.
Myth #4: The More Money You Invest, the Higher It Will Appraise
Busted! While it might seem that every home improvement project will add value to your home, that’s actually far from the truth. When going through the appraisal process, it’s important to remember a few things — the first being that the appraiser might value your home renovations for less than what you originally invested. Another thing to remember is that not all of your home renovations will matter to the buyer. Turning your basement into an entertainment area, for example, won’t do you much good if your potential buyer wants to use the basement for something else.
The key in this step of the home selling process is to understand what truly affects market value and whether or not it’s important to buying or selling a house. Do you have any questions about the appraisal process? Let us know, we’re here to help!