If you’re thinking about selling your house then you are probably trying to figure out how best to determine your asking price. Part of that process is getting an appraisal. So, if you’re wondering, “Can appraisals affect the selling price on a house in Raleigh?” then keep reading…
When selling your house, you’ll be juggling a lot of numbers!
- The asking price – the price you WANT to sell your house for.
- The valuation according to comparable market data – usually based on a report prepared by the real estate agent.
- The appraised value determined by a licensed appraiser — required by banks to obtain a loan
- The actual sales price — what buyer, seller, and lender agree to.
Can Appraisals Affect The Selling Price On A House?
Here’s the answer:
An appraisal should affect your asking price but it won’t directly affect the actual sales price. Here’s why…
An appraisal that is prepared by a licensed appraiser can be a great way to set your asking price, assuming you have the property appraised before putting it on the market. The report will be more in-depth than a market analysis prepared by an agent. This will help lend credibility to the asking price of the home.
However, an appraisal is an opinion of value and it does not guarantee that a buyer will pay you that amount for your home. Also, there is no guarantee that a buyer will be found.
So, an appraisal can influence the final sales price by virtue of its credibility. But it cannot guarantee that you will find a buyer, or the buyer will pay the appraised amount–make sense?
When you sell the home to a buyer, unless they are offering you cash, the bank will require another appraisal by a licensed professional of their choosing. If there has been a change in market activity since the original appraisal, there may be a large gap between the amounts.
Should I Ask For More Than Appraised Value?
I wouldn’t advise you to do this. The appraisal uses an adjustment method that takes into account the condition of your house relative to others in the area. It also adjusts for amenities, lot size, upgrades, +/- square footage etc.
I’ve seen situations where 2 independent appraisals have been done on the same property inside of 2 weeks. The values were within a couple thousand dollars of one another. So, if you wanted to add a few extra dollars for some negotiating room, that would be understandable. However, I have seen many people ask for 10% – 15%over appraised value only to see the home sit on the market for multiple years.
Are you thinking about selling your house?
Why bother with an appraisal at all? Why bother with showing your house to a bunch of strangers, and waiting a month while they decide whether or not they want to buy. You can get a fair all-cash offer from us to buy your house fast… and then you don’t have to worry about getting an appraisal, or listing the house, or showing your house, or negotiating. Just pick up the phone and give our team a call at 919-473-6885 or click here now and enter your information into the form.