When it comes to selling your home in the Ann Arbor area, you’ll be faced with tons of paperwork, home inspections, and a home appraisal. Often you won’t fully understand the process, which is why the home appraisal is one of the most hotly disputed parts of the process. Homeowners can feel that the bank or lender is trying to help the buyer rather than them — since their home is being judged on quality and value. To help separate fact from fiction, here are some common home appraisal myths debunked:
Myth 1: The Appraisal is Designed to Help the Buyer
One myth is that the main purpose of an appraisal is to ensure the buyer does not pay more for the house than what it is worth. In fact, the appraisal is meant to protect the lender. Lenders do not want to own an overvalued house any more than they want to give money for one. They want the best value like all other consumers.
Myth 2: Appraisers Use Formulas to Decide Home Values
Another myth is that appraisers use specific formulas like price per square foot to determine property value. In actuality,appraisers take several factors into consideration to judge a property. These factors include the property’s size, lot area, and the proximity of desirable community facilities such as good schools.
Myth 3: Clean Homes Get Better Appraisals
Realtors who want to sell might put in a lot of time “staging” the property. Staging means putting up new curtains, ensuring the house is swept and dusted, and using furniture to enhance the appearance of the property. The fact is, this does little to improve the appraisal of the house. Appraisers are trained to look for structural details, such as paint cracks, secure sink and lighting fixtures, and the condition of floor boards or carpeting.
Myth 4: Anyone with a Clipboard and Business Cards can be an Appraiser
If you think anyone can be an appraiser, consider this. Each state has minimum requirements to become a property appraiser. In Ann Arbor, each appraiser must pass an exam and pay a licensing fee in order to become an appraiser. Some trainees have to complete 2,000 hours of supervised experience before they can be their own appraiser.
The Home Appraisal & Selling Your Home
If you’d like more information about the home appraisal or selling process in Ann Arbor, contact us or read our free home seller’s eBook: