If you are planning to sell your home, seeking to purchase a brand-new house, aiming to identify highest and best use for your residence, drop your PMI, determine financial investment value or equity, resale ideas or more; it might be a sensible decision to make a small investment in an expert appraisal. We study daily and are trained to value your property accurately. Thereby, giving you the real value of your residence, which could actually aid you in saving or earning money over time!
FOR SALE BY OWNER
More and more homeowners today are opting to sell their homes FSBO (For Sale By Owner) and foregoing the help of a real estate agent. This will enable them to save thousands in REALTOR fees. If you list your home at the wrong price or without minor updates you could be costing yourself thousands of dollars. Plus many FSBO sellers feel that they have more control in the process of selling their home since they’re in essence making all the rules. One piece of advice that is consistently given from experts in selling your home FSBO … Do NOT “Overprice” Your Home! It’s very hard to be objective about your own home because of your emotional attachment to it. A professional appraiser is objective and will tell you what you need to know, not just what you want to hear.
If you’re working with a real estate agent to list your home, more than likely they’ll provide you with a Comparative Market Analysis (CMA) that lists selected sales in your area among of the first steps in determining what to set as the “Listing Price”. This step is vital if you’re will maximize your profit and minimize the home’s time on the market.
But even if you’re working with the most experienced real estate agent, it’s probably in your best interest to have an “objective” third-party’s opinion of value prior to signing a Listing Agreement. And that’s where we come in. We can provide you with a pre-listing appraisal so both you and your agent have an accurate description of your home’s features and a detailed analysis of the best recent and similar “comparable sales” or as they’re commonly called, “Comps”. In addition to helping you set a realistic selling price so your home will attract buyers, a professional appraisal can:
- Be a very valuable negotiating tool once you have a potential buyer
- Impress buyer’s with written proof of your home’s condition inside and out
- Make you mindful of problems and eliminate last-minute repair hassles that might delay a closing
- Decrease the chances of unknown problems that cause sales to fail
- Help you decide areas of your home to update to sell quickly and with the highest value
Lots of folks are surprised when they figure out that the market value of their home is much more than they thought, so investing in a professional appraisal actually allowed these people to receive several thousand more dollars than they thought they would when their home was sold.
Private Mortgage Insurance or PMI is the supplemental insurance that many lenders have to purchase when the amount being loaned is more than 80% of the value of the home (LTV loan to value). This additional payment is often folded into the monthly mortgage payment and is quickly forgotten. After a rise in values and/or payment to principal goes below this 80% level PMI is no longer required. United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met. An appraisal is required to determine the property’s value. The costs of these services are recovered in just a few months of not paying the PMI.