WHAT YOUR AGENT CAN DO FOR YOU TO HELP THE APPRAISAL PROCESS The best thing a homeowner broker can do to help the appraisal process is to prepare a one-page sheet for the appraiser that outlines the changes and repairs that the home has undergone since it was bought. WHAT THE APPRAISAL MEANS TO YOU As a seller, a low appraisal, if accurate, means you will have to lower your home's price to get it sold. Lenders will not approve loans for more than a home is worth, and holding out for an all-cash buyer who doesn't require an appraisal as a condition of completing the transaction is unlikely to net you a higher sales price. No one wants to overpay for a home. Unfortunately, recent distressed sales in the surrounding area can lower your home's appraisal value. If you feel that your home's value has been dragged down by the sales prices of nearby foreclosures and short sales, you may be able to convince the appraiser that your home is worth more if it is in significantly better condition than those properties. Sellers should also know that federal guidelines (intended to eliminate the inflated appraisal values that contributed to the housing crisis) sometimes cause appraisals to come in below fair market value and can make low appraisals difficult to challenge. When everything goes smoothly, the home appraisal is another box to tick on a loan-closing checklist. When the appraisal value is lower than expected, the transaction can be delayed or even canceled. Regardless of your situation in your homebuying, selling or refinancing experience, a basic understanding of how the appraisal process functions can only work in your favor.
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