3 Common Myths about a Home Appraisal

A home appraisal should not be a mysterious process for the home seller. In fact, if you are nervous about the appraisal, it is time to dispel the common myths surrounding how it impacts the sale of your home. 

1. A home inspection is the same as a home appraisal- The goal of a home inspection is to identify issues with the home that would derail the sale. Some examples include mold infestation, roof and foundation issues. Whereas, a home appraisal is used to determine the market value of the home for the lender. This is done by comparing the house to other properties in the neighborhood or doing “comps”. 

2. More money invested in a home equals higher appraisal- Some homeowners are guilty of costly over improvements to the home that do not drive up value. The appraisal is concerned with what price the market will bear not the fact that you spent $75,000 to turn a garage into an entertainment center. You should keep in mind that your home improvement taste may not align with some of the buyer’s preferences.

3. The appraiser is biased towards the buyer- Some sellers think since the buyer is paying for the service, the appraiser will be biased towards their interests. However, a professional appraiser is not loyal to the seller or the buyer but serves the needs of the lender. An accurate appraisal ensures the lender lends the right amount of money for the purchase of the home- no more or less. 

When it comes to your home appraisal, go confidently through the process with an experienced appraiser and the right information.