Real Estate - The Benefit of Appraisals
Most people think that an appraisal is a costly nuisance when purchasing a property. By the time your agent has reviewed the sale of comparable properties establishing value and you've inspected the property thoroughly, isn't the appraisal just a "rubber stamp"?
Not always!
Recently, one of my clients made an offer on a home that they just loved...there was nothing comparable on the market and they were willing to meet the seller's demands which were many. We got through the inspection and ordered the appraisal. No one anticipated having a problem. The home had changed hands several times in the last decade. It appeared that any question about the property could be easily answered by historical reference.
About a week later, I received an unexpected call. The appraiser had measured the property and it was over 300 square feet less than what the listing showed. A second (and even third) appraiser confirmed it. The property wouldn't appraise for the contract price using an accurate square footage number.
I won't go into all the details. The property had been appraised several times in the past and the square footage problem was not discovered...the appraisal was limited to the property's exterior. I always recommend that a full appraisal be done on a property and this is a good example to bring the point home. The extra cost is definitely worth it. For a major purchase, you always want another opinion and pair of eyes.
And, there is a happy ending to this story! My client, the buyer, renegotiated the price and got the home they loved for substantially less money.
To learn more about my services or search the entire Middle Tennessee MLS, visit: http://www.FivePointsProperties.com.
Not always!
Recently, one of my clients made an offer on a home that they just loved...there was nothing comparable on the market and they were willing to meet the seller's demands which were many. We got through the inspection and ordered the appraisal. No one anticipated having a problem. The home had changed hands several times in the last decade. It appeared that any question about the property could be easily answered by historical reference.
About a week later, I received an unexpected call. The appraiser had measured the property and it was over 300 square feet less than what the listing showed. A second (and even third) appraiser confirmed it. The property wouldn't appraise for the contract price using an accurate square footage number.
I won't go into all the details. The property had been appraised several times in the past and the square footage problem was not discovered...the appraisal was limited to the property's exterior. I always recommend that a full appraisal be done on a property and this is a good example to bring the point home. The extra cost is definitely worth it. For a major purchase, you always want another opinion and pair of eyes.
And, there is a happy ending to this story! My client, the buyer, renegotiated the price and got the home they loved for substantially less money.
To learn more about my services or search the entire Middle Tennessee MLS, visit: http://www.FivePointsProperties.com.
posted by Dr. Gala at 1:15 PM
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