Home buyers and sellers often understand that a home appraisal is an important part of the purchasing process. However, there are many myths that could be damaging to your sale, purchase or finances. Do you believe any of these home appraisal myths?
The More You Invest, The More Your Home Is Worth
We all want to believe that we will see a 100% return on investment on projects around the house. However, that is almost never the case in reality. In many cases, only a fraction of the money invested in beautifying your home will be added to the total value. In some cases, your changes could actually lower the value of your home. Removing bedrooms, in-ground pools, hot tubs and non-standard elements can all detract from your home’s value.
Home Appraisal = Home Inspection
This home appraisal myth could cost you a lot. A home appraisal is never the same thing as a home inspection. An appraiser wants to see how much your home is worth based on the inspection. An inspector wants to find problems with the home. Inspectors check for code violations, electrical problems, plumbing issues, insect problems and more. While an appraiser might note problems in the final report, an appraisal is not a substitute for an inspection.
Appraisers Work for the Home Buyer
In reality, home appraisers are independent parties that do not side with either the buyer or the seller. While the home buyer will cover the cost of an appraisal, the appraiser will provide an objective estimate of the home’s value. It is actually a crime to pressure or coerce an appraiser to value a home at a certain amount!
The Bigger the House, the Higher the Value
Bigger homes aren’t necessarily appraised for more than average-sized homes on bigger lots in the same neighborhood. It’s not common for large homes to receive lower appraisals than neighboring homes, since all of the space to heat and cool can be unappealing to buyers.
You’ll Get a Magic Number
Finally, some home sellers expect an appraiser to give you a magic number that a buyer should pay. While an appraiser can offer a dollar amount, that is not a magic number that will guarantee a smooth selling process. If you hired 4 different home appraisers, you would get 4 different home appraisals and valuations.
A Smooth Home Buying Process with Homeland Title & Escrow
Homeland Title & Escrow offers a broad range of title services, including complimentary consultations for first-time homebuyers. To learn more about our services, give us a call at (410) 544-6700.