Blog

Archive:

Why Realtors Need To Be Proactive About Appraisals

Appraisals are commonplace among real estate agents, but many first-time sellers and buyers need you to explain this concept to them in layman’s terms. Basically, an appraisal is a professional appraiser’s written estimate of a property’s market value. It is based on similar properties in the area and the property’s physical condition.

The problem: if the offered price from the buyer is higher than the appraisal, the bank will not loan more than the appraisal. This means that the buyer will have to cover the difference in cash. This can be devastating for those who simply want assurance that the seller will accept their offer, but end up having to pay a lot more than they anticipated.

The solution: be proactive about appraisals. Whether in a market for buyers or sellers, the seller of the home will naturally try to maximize their appraisal value by highlighting the home’s curb appeal, location and other positive features. Buyers, on the other hand, need their agents to be proactive about estimating appraisal values and negotiating purchase offers.  Here are a few steps to be proactive about appraisals and to prevent any miscommunication or meltdowns.

Do Your Research

If the appraisal value is not available and a buyer is eager to submit a purchase offer, you should offer a researched estimate of the appraisal value. In the estimate, give more weight to real estate listings and appraisal values of similar properties. Research why the seller is selling and look into any public records that provide information about the house. Give less weight to add-on or upgraded features, as these might not even be considered by the appraiser.

Be Prepared to Act Fast

Especially in a seller’s market, buyers have to be quick to make an offer if they want the home. That’s why their real estate agent needs to encourage the buyer to get pre-approved for a loan and have a negotiation strategy based on what sort of loan they can obtain.

The process of selling or buying a home can be unfamiliar and stressful, especially for first time clients. At Elite Realty, we strive to provide exceptional broker support for agents to provide impeccable client services. Give us a call at (702) 835-5255 to find out about the top real estate brokers in Las Vegas.