There are several types of Appraisals. If you are looking for information on getting the valuation on your property, either...
1- You need to find out what your property is worth OR...
2- You are selling your property!
Either way, knowing what to expect will help the process.
***A quick note. If you are simply interested in finding out what your property is worth... no need to spend money on a private appraisal. Ask your Realtor! The "CMA" (Market Analysis report) is done with almost identical methods of an appraiser, and it is generally a free service. If the report is done correctly, the final report will be a great indication of what an appraisal will come up with for the real thing! REQUEST YOUR
FREE Market Analysis (CMA).
Besides a "CMA" offered by a real estate professional... there are two kinds of APPRAISALS:
1- Private
2- Bank-ordered
The "Private" is paid for by the owner, and is only used to indicate the property's worth. It cannot be used in the sale of the property... it is the BUYER'S future mortgage lender that will order the appraisal for the closing. Prices generally range from $250-$500 or more depending on the property.
"Bank-ordered" appraisals come after a buyer and seller enter into an executed sales contract. The buyer's future lender sends out their own appraiser to establish the property's worth. Generally they look for 3-6 "comps" (comparable properties) within a short distance to the subject property... similar in size. They look at both the most recent sales, and pending sales. They also consider properties actively for sale. They may adjust for time and other variables when needed. The final amount/value will generally not be shared with the owner or owner's agent... it is for the buyer's lender and buyer only.
If there is a significant difference between the amount/value generated and the sales contract price, both parties may need to enter into a series of negotiations to ensure all parties are happy.
Using the services of licensed, experienced Real Estate Agents will ensure better success if/when these issues arise. Especially in this market... chances are the number will not make both parties happy, and maybe even the bank. Avoid the pitfalls, use the guidance of a professional.
MAKE SURE THE APPRAISAL IS FAIR:
1) Make sure you are using an EXPERIENCED Realtor. They will share valuation information with the appraiser. They will point out any short sales or foreclosures that may adversely affect the initial valuation by the appraiser. They will point out upgrades and additional material facts that the appraiser might be able to use.
2) If the final price from the appraiser comes back to low, you'll need an experienced Realtor for negotiations between both parties. And IF negotiations just aren't possible, you'll need your agent to be one step ahead and already out looking for your new buyer. The good news: once you have the appraisal done, your asking price and any new offers will make the 2nd offer go much more smoothly.
IF YOU NEED A REFERRAL FOR A SOLID, REPUTABLE AND RELIABLE APPRAISER - SEND ME A QUICK EMAIL AND I'LL GET RIGHT BACK TO YOU!
