Appraisals are for the buyer to pay… Or are they?

Whether selling a Livermore CA home, a piece of paradise on a tropical island, or Austin TX real estate, you’ll run into the same dilemma regardless of the location: Your potential buyers will most likely take issue with your asking price, no matter how much confidence you have in the value of your home. Whether you like it or not, that’s just the way it is. After all, it is probably the most substantial investment they will ever make in their entire lives.

There is nothing more reassuring to a buyer than an impartial professional certifying your home’s value.
Because real estate involves such serious financial decisions, sellers can boost their home’s likelihood of selling by getting a certified opinion from a real estate appraiser. Appraisers are third party experts, in effect arbitrators who don’t have a vested interest in the home. What they are certified to do is provide an impartial estimate of the value, condition, and quality of the home. By paying for an appraisal in advance, you raise the odds that you get the most money possible because of how that appraisal will give the buyer a better feeling about the home’s true value.

During the inspection of the home, the real estate appraiser determines the quality of construction, the condition of the total property, and how outdated the home may be compared to other homes that have sold. They research the entire property by making observations and searching public records for the details of other property assessments, past sales and leases, and any other transactions.

Discuss in advance with the appraiser for a transfer of the appraisal to the new purchaser.
The home appraisal is a valuable asset that is part of the home, but it loses its value to the seller as soon as the home is sold. Why not offer that appraisal to the buyer? The borrower would save $300 to $700, which, in turn, can help you get more money during negotiations. In addition to helping reassure the buyer of your home’s worth, you can get some of your appraisal cost reimbursed, in essence, by simply transferring it to the buyer. In addition to cutting down some of the buyer’s expenses, you also guarantee that your home will appraise, because if the borrower hires their own appraiser, it’s a possiblity that that appraiser won’t think the home is worth what they’re paying.

For a nominal fee, usually $25 to $50, you can have the appraisal transferred to the buyer. In this real estate market, buyers can walk away from a contract for any reason and, sellers must use every tool possible to make sure their deal makes it to the closing table. Getting an appraisal in advance is a good, inexpensive bone you can toss into the deal to show your good faith and cooperative spirit as a seller. It not only increases the buyer’s confidence in dealing with you, but it might put a few more dollars in your pocket to boot!