Who should pay for your appraisal when you sell your home?
Whether it's Houston TX real estate, a hut on a tropical island, or Colorado Real Estate, the same rule goes into effect: Your potential buyers will most likely doubt the asking price. Like it or not, that's how it goes. For most people, it's the largest investment they'll ever make so you can't blame them.There is very little that can be more assuring to a buyer than an unbiased third party certifying your home's value.
Because real estate involves such a large amount of money, sellers can boost their home's odds of selling by getting the professional opinion of real estate appraisers. Appraisers are third party real estate experts who do not have a vested interest in the home. What they are certified to do is provide an impartial estimate of the value, considering the condition and quality, of the home. An advance appraisal can help you get the most money possible because of what that unbiased opinion of value does for the buyer's confidence that the home is worth what you're asking.
While inspecting the home, the real estate appraiser judges how sound the construction of the home is, the condition of the total property, and how dated (or outdated) the home may be. They compile data on the property as a whole by taking observations and searching public records for the details of other property assessments, past sales and leases, and any other transactions.
Negotiate with the appraiser in advance to make sure he/she will transfer the appraisal to the new buyer.
If used properly, an advance home appraisal is a tangible asset that is part of the home, but it loses its value to the seller as soon as the home is sold. Why not offer that appraisal to the buyer? The borrower would save $300 to $700, which, in turn, can help you get more money during negotiations. In addition to helping reassure the buyer of your home's value, you can -- in essence -- receive some of the expense of the initial appraisal back by giving it to the borrower. In addition to saving the buyer money, you also guarantee that your home will appraise, because if the borrower hires their own appraiser, it's possible that that appraiser won't think the home is worth what they're paying.
For a very small charge, usually $25 to $50, you can have the appraisal transferred to the buyer. In today's highly competitive real estate market, sellers have to use every reasonable tool available to them. This is a nice, inexpensive incentive you can throw into the deal to show your good faith and cooperative spirit as a seller. It not only raises the purchaser's level of trust in working with you, but it might make you a few more dollars as well!
