The Appraisal Process
The appraisal process can be a mystery to the home buyer and seller. Here is information that I hope will help explain the process.
If you have three different appraisals, you will have three different values. If you have three different Realtor opinions, you will likely get three different opinions of value. Unfortunately, in the end it is one person’s opinion on that given day to determine the property value.
Every improvement made to a home may NOT increase value. Home improvement projects are not necessarily investments in which the homeowner should expect dollar-for-dollar returns. For instance, a swimming pool is a great usable improvement and can return about 60% of the actual cost. If it’s a 50 yr. old pool with poor equipment, it may add no value. A glass sun patio in Washington may not add value. A lot of improvements are known as Value In Use, solely value for use of the current homeowner.
Appraisers use a Federal definition of market value when developing value opinions. It will reflect the most probable sales price. The appraiser uses multiple sales to justify a price, not just one inordinately value sale.
Price per square foot can differ based on lot location, lot size, view, quality and condition of the property.
There is no set adjustment for a specific feature. New tile and carpet may vary from appraisal to appraisal.
The Realtor is legally barred from any communication that is intended to unduly influence the outcome of the appraisal.
In this fast-paced market, this information may be useful to you as a buyer or seller. Contact us if we can help in any way or if you are considering buying or selling a home – we can navigate the appraisal process.
Penny & Team – 206 842 8421 / 360 697 9966 Penny@TheOrginalPenny.com
Serving Bainbridge Island, Poulsbo, Silverdale, Kingston, Bremerton, Port Orchard and Port Ludlow