Appraisals & Their Outcomes with Buyers or Sellers

You've likely heard the term before, but do you know all that goes into an appraisal, and even what it is for?

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Let's talk about appraisals.

An appraisal is a third party getting the value of a home in the most scientific way possible. The appraiser is neutral, so unlike buyers, they won't have an emotional connection to the home or its value. They use comparable properties in the neighborhood together with the updates in your home to find a value for the home. A willing and able buyer and their purchase contract will be a big part of that.

Anyone can order an appraisal on a property they own, but I recommend sellers that I work with not get a pre-appraisal because, as a real estate professional and local market expert, I can give you a value and show you a marketing plan to get your home sale to that value. 

Buyers, on the other hand, will be required to do an appraisal by their lender if they are financing their purchase. Cash buyers may want to have an appraisal, but they aren't required.

Don't let appraisal issues break a deal at the 11th hour

If the appraised value of the home comes in lower than your offer, you might not be able to get your loan, because the bank won't lend more than they think the house is worth. If the home appraised higher than the offer price, the seller can't change their asking price, because you already have a contract.

Obviously, there are a lot of things that can happen surrounding an appraisal and a lot of things your agent can do up front to help you avoid issues down the road that can make or break a deal at the 11th hour. That's why it's so important to have a great agent on your side to help you as a buyer or a seller.

If you have more questions, or you're thinking about buying or selling a home, give us a call.

What Has Been Going on in the Phoenix Housing Market?

We have a quick market update for you today. Home sales are up, but so is inventory and the average days on market.

Selling your Greater Phoenix Home? Get a free home value report

Buying a Greater Phoenix Home? Search all homes for sale

I just have a quick update for you today on our housing market. The latest stats are in for Phoenix and I wanted to give you an idea of what the market is looking like right now. Here are some of the notable statistics we’ve been monitoring:

• Average listing prices are up 4.5% over last year.
• The average sale price is up 7.9% over last year.
• We have about 3.29 months of inventory, slightly up from last year.
• The average days on market rose slightly from 71 to 74.

Inventory has crept up slightly.

New home sites have also been increasing, too. The number of new home sites is still historically low, but the increasing number is encouraging. These numbers are for the Phoenix metro area, so if you would like some stats specifically for your area or neighborhood, we would be happy to send those to you. 

If you have any other questions, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.