There are 3 top misconceptions that sellers have about appraisals.
For sellers, the home appraisal can feel like a stressful, confusing process. Many sellers don’t even know what the home appraisal is or why they need one. This can lead to some common misconceptions about the process.
But the home appraisal is an important part of a home sale. As a seller, it’s important you understand some of the misconceptions around them.
Top Seller Appraisal Misconceptions
So what, exactly, are the top seller appraisal misconceptions? A recent article from realtor.com outlined common misconceptions many sellers have about the home appraisal process, including:
1. An appraisal is the same thing as an inspection. Home appraisals and home inspections are two entirely different things. While the inspection aims to uncover issues with the home (for example, maintenance or repair issues), the appraiser is there to assess the value of the home.
2. Appraisers work for the buyer. While the buyer has a vested interest in the results of your home appraisal, the appraiser actually works on behalf of the lender, not the buyer. The lender wants to make sure the money they’re lending the buyer (in the form of the mortgage) is a solid investment. The job of the appraiser is to evaluate the property and make sure it’s a solid value compared to the purchase price.
3. Bigger houses have higher appraisals. Just because you have more square footage doesn’t necessarily mean your home will appraise for more than smaller properties in the neighborhood. Appraisals and home size aren’t entirely correlated; appraisals are based on a variety of factors, including comparable properties (comps) and the condition of the property. So don’t expect your home to appraise higher than your neighbor’s just because it’s larger.
Top Seller Appraisal Misconceptions Takeaway
The Takeaway: So remember, an appraisal is not an inspection. Also, the job of the appraiser is to assess the value of the property, not to inspect it. Again, appraisers work on behalf of the lender in order to protect their investment. And finally, just because a home may be bigger than the one of the neighbors, it does not automatically mean that it will appraise higher.
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By Hugo Rivera, Realtor ®
International Best Selling Author
Broker: Robert Slack LLC
3220 SW 31st Rd, #201
Ocala, FL 34474