A home appraisal is a key step in the home buying process, but it’s something often clouded in misconceptions. As a result, buyers and sellers often end up surprised (and sometimes disappointed) when they find out what their home is really worth.
So, to help you avoid any unwanted surprises, here are some of the most common myths about home appraisals:
Myth 1: Home Appraisal = Home Inspection
A home inspection and a home appraisal are two completely different things! A home inspector will look for any potential problems with the property, such as with the wiring, plumbing, foundation, and electrical and HVAC systems. Meanwhile, a home appraiser will focus on the value of the property by taking into account aspects such as market trends, historical data, and the values of comps.
Myth 2: The Buyer Owns the Appraisal
The appraisal is actually ordered by the lender and paid for by the buyer. That’s because the house acts as collateral and the lender wants to make sure that the property’s worth what they’re lending. So, technically, the lender owns the appraisal. However, the buyer has the right to request a copy of the appraised value from the lender.
Myth 3: Appraisers Tell You Exactly How Much a Buyer Will Pay for Your Home
Appraising is not an exact science. Many factors can affect the value of a home, including location, condition, size, and recent sales in the area. An appraiser will give you their opinion of the value, but the final decision on how much to pay for a home is up to the buyer and their negotiation skills.
Myth 4: A Bigger Home Has a Higher Appraisal Value
Typically, yes, but not necessarily. Appraisers look at the overall condition of the home, and not just its size. This includes looking at the property’s layout, age, and amenities. So, if a home is in poor condition, it may not appraise for as much as a smaller home in better condition.
Myth 5: All Home Improvements Increase the Value of the Property
Some home improvements, like a new roof, will fetch a return of more than 61%. But not all upgrades are created equal! A swimming pool may be a selling point for some buyers, but it could also turn others away. And an addition that doesn’t fit the style of the rest of the house could actually decrease its value.
Need Help Buying or Selling Your Home in Upland, California?
If you’re thinking of buying or selling a home in Upland, California, Camden Mckay Realty can help! We’re a team of experienced real estate professionals who’ll guide you through every step of the process, from finding the perfect home to negotiating the best possible price. Contact us today at (909) 841-0243 to learn more about what we can do for you!