As a home seller, it's essential to understand the concept of appraisal and how it affects your home value and selling process. An appraisal provides an objective estimate of your home's value, which helps determine how much a lender may offer a potential buyer for a mortgage. Typically, the home appraisal process is carried out by a licensed appraiser who inspects the property and uses specific criteria to determine its value. In this blog post, we'll delve into the nitty-gritty of appraisal, what it entails, and how it can impact your home-selling process. So, if you’re looking to sell your home soon, this guide may be of value to you.

What is an Appraisal?

An appraisal is an essential process in real estate transactions, and it helps determine a property’s market value. Once the appraisal process is completed, an appraiser typically provides a report that outlines how they came to the estimated value of the property. The report may include factors like the home's size, age, location, overall condition, and recent comparable sales in the area. The appraisal report is essential, as it can influence whether or not a potential buyer is approved for a mortgage loan.

How Does Appraisal Work in the Home Selling Process?

When you're selling your home, an appraisal is usually ordered by the buyer’s lending institute to determine if the asking price is feasible. After the appraiser evaluates the property, they provide a report that outlines what they believe the property is worth. If the appraisal comes back higher than the asking price, the buyer may use this information to negotiate a lower selling price. On the other hand, if the appraisal comes in lower than the asking price, the seller may have to adjust their price to meet the appraised value or agree to lower the price for the buyer.

How to Prepare for an Appraisal?

When preparing for an appraisal, it's vital to ensure that the home is in good condition. The appraiser will want to evaluate the home's overall condition, so it's essential to ensure that the home is clean and free from any clutter or damage. Additionally, you may want to ensure that any minor repairs are completed before the appraisal takes place, such as fixing broken windows or replacing missing shingles. These minor improvements may increase your home's value and help secure a higher appraisal value.

How to Increase Your Home's Appraisal Value?

If you're looking to increase your home's value before the appraisal process takes place, there are a few things you can do to help. First, consider making minor improvements, such as repainting any scuffed walls or fixing any leaky faucets. Additionally, you may want to consider cosmetic upgrades such as installing hardwood floors, new light fixtures, or replacing outdated appliances. Lastly, it's essential to have a well-maintained home. Making sure the lawn is well-manicured, the house is clean, and any clutter is removed can all make a difference in your appraisal value.

What to Do if You Disagree With the Appraisal?

If you disagree with the appraisal, there are a few steps you can take. First, you may request an additional appraisal with a different appraising company to obtain a second opinion. You'll need to pay for this service, but it may be worth it if you believe the appraisal value is significantly lower than what your property is worth. Secondly, you may dispute the appraisal if you believe that the appraiser made errors or missed crucial factors. In this case, you'll need to provide supporting documentation to the lender to help correct any discrepancies.

The appraisal process can be a crucial part of the home selling process, and it's essential to understand how it works and what to expect. By preparing your home, making minor improvements, and being aware of what factors appraisers consider, you can help increase your home's value and secure a higher appraisal.

Overall, by understanding the appraisal process, you can ensure that you're making informed choices when selling your home, leading to a successful sale.

Ready to sell your home or looking for an investment property? Please contact me.

📞 (604) 760 - 8995

✉️ homes@murphytimmis.com

💻 www.debbiemurphy.com

Buying real estate is not just about finding the perfect property and signing a contract. It’s a complex process that involves several legal details and a thorough understanding of subjects in real estate. If you’re new to the world of real estate, you might be unfamiliar with the term 'subjects', but this is a major part of any home buying or selling process. In this blog post, we will take a closer look at what subjects mean in real estate and why they are important.

Subjects are included in a real estate contract and serve as clauses that allow the buyer to perform certain due diligence activities before becoming fully committed to the purchase. As such, subjects are inserted to protect the buyer's interests. These clauses typically relate to the condition of the property, financing, and legal aspects of the transaction.

The most common subjects in a real estate contract include inspection, financing, and title searches. When you sign a contract with these subjects, you have a limited or specified time frame in which you can complete them. If you find something that makes you uncomfortable or unhappy during the subjects’ condition period, you can bail out of the purchase with no financial repercussion.

Inspection subjects are usually included in the purchase agreement and permit the buyer to inspect the property and request repairs. This may include a standard home inspection to check the overall condition of the property, as well as special inspections for things like pests, environmental hazards, or structural issues.

Financing subjects allow the buyer to obtain mortgage financing that suits their needs. A financing subject is added to the sale’s contract that states the purchase is dependent on the buyer securing the necessary mortgage financing. If the buyer doesn’t secure the mortgage financing, they’re free to walk away.

Title subject is added to ensure there are no legal claims against the property. The title search can include looking for liens, unpaid utility bills, or other encumbrances that might make the title invalid or less valuable.

When are subjects needed?

Subjects can be included in the contract when you’re buying a property or taking out a loan to purchase it. Additionally, if you are selling a property and have buyer contingencies, such as an inspection or financing, those could also include subjects that need to be agreed upon prior to closing the deal.

What to look out for when subjects are added to the agreement?

When subjects are added to a real estate contract, it’s important to pay attention to the language that is used in each clause. For example, some financing subjects may require you to obtain a pre-approval while others may stipulate that you get an actual mortgage approval. It’s also important to note how long the due diligence period is and if there are any penalties for extending the due diligence period.

In conclusion, the subjects are an essential part of the real estate process, and understanding their importance can make you a better homebuyer. Entering into a real estate contract without subjects can become a recipe for disaster.

The following are common examples of subjects:

• Subject to Loan Approval

• Subject to Home Inspection

• Subject to Pest Inspection

• Subject to Title Search

• Subject to Structural Inspection

• Subject to Appraisal

By having subjects, homebuyers can make informed decisions on whether or not to complete the transaction before the subject’s condition period expires. The subjects clauses allow buyers to be confident in their purchase, and ensure they are protecting their interests throughout the transaction.

While subjects may seem like a small aspect of the real estate process, they play a crucial role in maximizing the value of your purchase. Understanding them is key. This is precisely why partnering with an experienced real estate agent is so important! A real estate agent will be able to provide you with guidance on which subjects are best for your specific situation, and even help negotiate the terms with the seller.

Ready to start searching for your ideal home? Contact me today!

📞 (604) 760 - 8995

✉️ homes@murphytimmis.com

💻 www.debbiemurphy.com