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Who should pay for the appraisal of the FSBO home
you sell? (12/14/07)
Whether you're selling your home in Abilene TX, a villa in Spain, or
Denver real estate, you'll run into the same roadblock: Your future
buyer will likely doubt your asking price, no matter how confident you are
of your home's worth. It's simply human nature. For most people, it's the
largest investment of their lives so you can expect them to act with due
care.
There is nothing more reassuring to a buyer than an uninterested third party
validating the value of your home.
Since real estate dealings involve such a large financial commitment,
sellers do well to get the advice of real estate appraisers. Appraisers are
third party experts, in effect arbitrators who have no vested interest in
the transaction. Their job is to document an unbiased estimate of the value
of the home. By paying for an appraisal in advance, you raise the odds that
you get the most money possible because of how that appraisal will make a
buyer feel about the home's true value.
While evaluating 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dated (or outdated) the home may be compared to other homes that have sold.
They compile data on the property as a whole by making notes and searching
public records for the details of other properties, past sales and leases,
and any other transactions.
Discuss in advance with the appraiser for a transfer of 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
$250 to $500 (or even more), which, in turn, can help you increase your odds
of actually having a meeting of the minds to begin with. In addition to
reassuring the purchaser of your home's value, you can literally get the
cost of the initial appraisal back by simply transferring it to the buyer.
In addition to saving the buyer money, you also guarantee that the loan
won't fall through because of a different (lower) appraisal, because if the
borrower hires their own appraiser, there's always a chance that appraiser
will think the home isn't worth what they're paying.
For a small charge in the grand scheme of things, usually $25 to $50, the
appraiser will transfer the appraisal to the buyer. In a real estate market
with buyers as fickle as they are, sellers must use every tool possible to
make sure their deal makes it to the closing table. This is a great amenity
you can toss into the deal at a low cost -- and probably even get that small
outlay back -- to show your good faith and cooperative spirit as a seller.
It not only increases the buyer's confidence in you, but it might put a few
more dollars in your pocket as an added bonus!
Contributing author:
Aurora real estate company of Colorado -- Automated Homefinder.
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