Preparing for Appraisals - Contracts and Comps
Below is a MRR and PLR article in category Finance -> subcategory Other.
Preparing for Appraisals: Contracts and Comparables
Introduction
You've sold your home and are gearing up for the appraisal process. Understanding how contracts and comparable home sales influence the appraisal can make a difference.
Your Contract
One crucial factor an appraiser considers is the contract between unrelated parties for the sale and purchase of the home. Surprisingly, transactions between relatives can lower the appraisal amount. If you're not selling to a relative, ensure you provide the appraiser with a clear copy of your contract.
Comparable Sales
Typically, when selling your primary residence, the buyer intends to use it as their primary home as well. In such cases, the appraisal focuses heavily on recent sales of similar homes in the neighborhood, rather than the property's rental income potential or replacement cost.
Appraisers will search for homes sold in the area over the past few months. If you're aware of a nearby sale for a good price, inform the appraiser, but first verify the sales price through reliable sources, like the courthouse records. Avoid sharing unverified neighborhood gossip.
Conclusion
When offering information, be discreet, factual, and supportive. You want to aid the appraiser without undermining their expertise.
You can find the original non-AI version of this article here: Preparing for Appraisals - Contracts and Comps.
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