Appraisal Myths Debunked
The appraisal process can be frustrating. It never seems like your home is valued where you think it should be valued. It’s hard (as a seller) not to feel like the whole thing is “rigged” by the buyer.
So, in order to get an objective opinion – we’ve found some good information from The Appraisal Foundation that will set the record straight once and for all – and will hopefully make your upcoming appraisal more enjoyable (if an appraisal can be enjoyable).
MYTH: THE BORROWER HIRES AN APPRAISER
TRUTH: OK, when we say borrower – we really mean buyer, right? And of course, the buyer wants your appraisal to come in on the lower-end because that opens up the table for further negotiations. But, just to set the record straight – the borrower is responsible for the cost of the appraisal, but they don’t hire or manage the appraisal process – the lender does that. Because, ultimately, the lender wants to make sure they’re making a good investment when lending money to your buyer.
MYTH: MONEY I PUT INTO MY HOME TRANSLATES DOLLAR-FOR-DOLLAR INTO A HIGHER APPRAISAL
TRUTH: Your home improvement projects might increase your home value, but maybe not. It’s up to the market to determine what kind of value they place on a home upgrade.
MYTH: APPRAISERS SET THE VALUE OF THE HOME
TRUTH: Appraisers don’t set the value of the home; they create a credible opinion of how the market will value the home. What someone will pay for the home ultimately determines the value.
We hope this information will help you better understand the appraisal process and the purpose it serves.
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