Home Appraisals

In today’s real estate market, selling a home above its appraised value, although not guaranteed, is very much possible.

This situation can occur for various reasons, including a hot real estate market, multiple competing offers or a buyer's willingness to pay more for a property they highly desire.

At 72SOLD, one of the key differentiators in our business model is our ability to navigate such dynamic market conditions and help sellers achieve the best possible outcome in the sale of their home. We work closely with local real estate professionals to provide valuable insights and strategies, allowing them to maximize the home seller’s return on what is often their most significant investment.

What Is an Appraisal?

To fully understand the concept of selling a house above its appraised value, you must first understand what an appraisal is and how it works. An appraisal is a professional assessment of a property's value, conducted by a licensed third-party appraiser. Several factors influence the appraisal value:

• Location: The property's location plays a pivotal role in determining its value. Proximity to schools, shopping centers, transportation hubs and safety are all factors that can positively or negatively affect the appraisal.
• Condition: The state of the property's structural components, systems and overall maintenance is crucial. A well-maintained property typically receives a higher appraisal value.
• Comparable Sales: Appraisers often use recently sold properties in the area that are similar in size, condition and location to the subject property. These comparable sales, or "comps," help appraisers assess the value.
• Amenities or Special Features: Certain features like solar panels (especially if the loan is paid off), a new roof, a swimming pool or recent renovations can positively impact the appraisal value.
• Detriments: Conversely, features like an old roof in need of replacement, structural issues or significant damage can have a negative impact on the appraisal.

Impact of Appraisal on Mortgage Loans

The appraisal value has a direct impact on a buyer's ability to secure a mortgage loan. Lenders typically base the loan amount on the price of the home, which includes the appraised value. If the appraisal falls short of the asking price, it can create challenges for both the seller and buyer. For instance, if there’s a significant discrepancy between the appraisal and the asking price, this will likely lead to loan denial.

Alternatively, the buyer might need to come up with additional funds to cover the difference between the appraised value and the purchase price.

Additionally, if there's an appraisal contingency clause in the contract and the property's appraised value falls short of the agreed-upon purchase price, the buyer may have the option to terminate the contract. This outcome is generally not favorable for the seller If there are no other offers or interested buyers.

Does the Seller Need an Appraisal?

In most cases, the seller does not need to obtain their appraisal. While it's a standard practice for buyers to have an appraisal as part of the mortgage process, sellers often rely on the guidance of real estate agents when establishing an asking price.

At 72SOLD, our experienced agents can help you determine the appropriate listing price based on comparable properties in your area. Moreover, our proprietary marketing strategy helps generate genuine enthusiasm about you home, with the goal of getting multiple buyers to compete for it.

Tips for Selling Above Appraisal

If your goal is to sell your home for more than its appraised value, here are some strategies to consider:

• Avoid a Bad Appraisal: Invest in home improvements that can positively impact the appraisal, such as addressing any needed repairs or renovations.
• Sell for Cash: If you can find a cash buyer, you may not need to worry about appraisals, as cash buyers don't require mortgage appraisals.
• Get Another Appraisal: If you believe the initial appraisal is undervaluing your property, you have the option to get a second appraisal.
• Negotiate with Serious Buyers: If a buyer is genuinely interested in your home and is willing to pay more than the appraised value, you can negotiate with them to bridge the gap.

Sell Your Home for More Than It’s Worth with 72SOLD

If you’re like most homeowners looking to sell their property, you’re probably looking to maximize the return on your home sale. The good news is with 72SOLD, your vision can easily become reality. Our innovative approach to real estate, which includes selling your home not only quickly but for more than it’s appraised value, has helped thousands of homeowners enjoy an extra boost of income.

Contact us today and embark on a successful real estate journey with our experienced team by your side.