Appraisals can make or break a deal
Would-be sellers are often disappointed to find that, although they have managed to get an acceptable contract price for their home, the appraisal comes in at a number that is less than that amount and, all of a sudden, the deal is off. What a let down! Certainly the buyer is also disappointed as they want to buy the home but are not usually willing to pay over the appraised value and so they are now back to the drawing board unless a compromise can be worked out with the seller.
Depending on which side of the transaction you are on, try to get everyone to agree on finding another appraiser. We have seen the same house appraise a few weeks apart for 50% more. Appraising is not a precise science.
One fairly important thought to keep in mind is that what is of value and worth to a homeowner in terms of improvements, is not necessarily viewed the same way by the appraiser. For instance, a seller might have recently put a lot of money into a new kitchen or bath and have had the thought that this money spent was going to come back in the form of increased value for the property. Not necessarily so. An appraiser does not necessarily see it that same way.
So the word of caution to those considering making significant improvements is to do those only if they will personally enjoy the changes. In terms of getting a home ready to sell, new carpet and fresh paint are usually items well worth their cost and effort. These are rather small in terms of the big picture but their impact is most noticeable. It is like putting a layer of icing on the cake!
Read the full article in the Sarasota Herald Tribune here
