Zack childress real estate it is a depressing situation when your home appraisal results confirm that the property value is lesser than you expected. Lenders are ready to sanction loans for homes priced at fair market value. It leaves a huge impact when you either sell or buy a home. The seller must know to solve the disputes during the home selling process. The challenging situations have to be handled with the help of real estate agents especially first time home sellers.
Zack Childress points out the factors leading to a low home appraisal:
- Appraisers visit your property to know the details like square foot of every home and other infrastructure details which includes both exterior and interiors of your household. It is the seller’s duty to keep the home crystal clear and remove all junk.
- The basement value is calculated separately which means however the space is sophisticated, the value and share in total property is just a fraction. The extravagant features are not going to add any value to the entire property value.
- The already sold homes in neighborhood are considered to calculate the property value.
- The defective homes which includes mold, pest conditions are often seen in tear down homes. The damages are accounted and value is assigned accordingly.
- The home improvements are not given much significance. Only few upgrades are of great value for a long term.
- Since market fluctuates constantly, the home appraisal is quite tricky. When prices fall, you cannot expect a great deal. This will create a dilemma in seller’s mindset when to sell his or her home. In turn, realtors face same situation, he thinks what to advice and the right time to sell the property cannot be determined at such stances.
- This leads to a dispute where buyer cannot decide the asking price.
- Buyers are just looking for a simple condo or single-family home; sellers who own luxury real estate are finding it difficult to sell their home. The prices have gone up, many buyers are investing on rental property and millennials cannot afford luxury homes in cities where unemployment rate high.
Functional obsolescence describes the features which does not affect the market value:
- On an average, there will be a bedroom in a home.
- Reaching the master bedroom through dining hall.
- A home having multiple bedrooms, to reach a bedroom is through walking through another bedroom.
- Living space is reached via a garage.
Waterfront properties are very rare and can be found in few cities like Vegas. You can consider an appraiser who has prior experience in handling waterfront properties. The investors have to accept the deliberate truth that they pay a huge sum of money in order to do a home appraisal process.
From this real estate review, we indeed learnt the importance of home appraisal process. This will help the investors to prevent from real estate scams as he or she will know the exact price of a house hold. To know more about home appraisal, browse through the podcasts in REI quick cash system.