No matter where you live in San Diego or where you are moving, you want to price your house correctly in order to achieve a seamless selling process. In order to get the most money for your home and make it a viable option on the current housing market, it is important that all sellers get a home appraisal. Due to the low inventory in San Diego, an improperly priced home will stand out against those that have been priced accordingly; without a correctly priced house, you could lose potential buyers and elongate the selling process.
Home Appraisal Approaches
There are two approaches for a proper home appraisal. The first is called the sales comparison method, which looks at three or four recently sold homes in your area. These homes will have a similar style or floorplan, square footage and features (such as a fireplace or garage). The appraiser will see how your house compares and base the suggested selling price on these comps. The second method is usually used for new construction or in areas where comps are not available. In this situation, the appraiser would estimate how much it would cost to rebuild your home if the entire structure was destroyed. In this situation, the appraiser would also take into consideration depreciation and land costs to come up with a final figure.
Myths about Appraisals
Many myths have risen up around what an appraiser does and how the process is actually completed. For example, many people believe that there is an exact formula which appraisers use to determine the price. As mentioned above, the appraisers use guidelines when approaching a home, but every property is different. Another myth surrounding appraisals is that a clean house will receive a better price than an untidy one. Appraisers are trained to look beyond the superficial; however, they will be on the lookout for structural damage caused by neglected such as broken windows or cracked walls.
Fixing a Low Appraisal
What if you thought your home was worth more than the appraisal price? There are actions you can take in order to raise that low appraisal. First, consider why you receive the price: if it was due to repairs or maintenance, consider making some or all of the changes. Doing so may significantly raise your appraisal price during a second appraisal. Secondly, consider seeking a second appraisal if the appraiser was inexperienced or unfamiliar with the area. A second appraisal done by a local or more experienced person may give you a more accurate price for your home.
Once you’ve gotten your appraisal, it’s time to begin the process of selling your home. A local real estate agent will be able to help you price your home and weigh out whether or not you need to make certain improvements as a result of a lower appraisal. The right agent will know exactly how to navigate your specific situation. If you would like to learn more about this process or want to sell your home now, please don’t hesitate to contact us.