How do Appraisals Work?

Thanks for visiting my video blog! There are just so many questions surrounding the home-buying process so it's easy to get lost. Today I want to talk about one question in particular I was asked by a client of mine: what happens if the appraisal value of my home comes in low? Fortunately, we haven't experienced this problem as much as we did earlier in the year, but it still raises an important question. Appraisals are a mystery to a lot of us, so how do they work?

Appraisals are used to protect you from over-paying and to protect you from spending outside of your payment bracket. They are also used to keep the market stable and prevent inflation.

The mortgage company sends an appraiser to the home. Using pending sales and closed sales, they evaluate your home in comparison. As a real estate agent, it is our job to guide that appraiser. We give them facts about the area and neighborhood. We present them with recent homes that are similar and have sold for a high value. So it's important that the appraiser has this key information. This way you stand a better chance of getting a higher appraisal value.

If you have any questions about how to increase your appraisal value, please give me a call today! Let's talk about your home! Thanks for watching!