The results of a home valuation are important for a homeowner who is selling their property. One of the greatest fears of a seller when a home valuation is done is that the valuation will come back significantly lower than expected.
There are numerous possible reasons why a home valuation could be lower than expected. Sellers may be able to prevent low valuations if they know what some of the common reasons are. The following are six scenarios that could lead to a lower-than-expected valuation on a property.
The seller's initial expectations were not realistic.
A lot of times when a seller is disappointed with a home valuation the seller's initial expectations were not realistic to begin with. As such, it can be difficult for a seller to accurately guess what their home should be worth at a given moment. It's important to avoid being too optimistic so that you don't end up disappointed if you're getting a home valuation while in the process of selling your home.
There have not been a good amount of comparable sales on the market recently.
Accurate home valuations require comparisons with similar homes that have sold recently in the area. If there haven't been many sales recently, this could cause skewed results in a home valuation. As such, a lack of recent comparable sales could result in a home valuation that is lower than expected.
The seller didn't put enough effort into the property's appearance.
Appearances are essential when it comes to home valuations. That's why sellers must make sure their property looks its best during a home valuation. On top of not only thoroughly cleaning and organizing their home's interiors, sellers should also put some effort into landscaping and exterior appearance. Curb appeal is an essential factor when it comes to finding a home's value.
There have been a significant amount of foreclosures in the area.
Numerous foreclosures in a particular neighborhood can, unfortunately, bring down appraisal values for nearby homes. Unfortunately, there is not much a home seller can do when this issue is driving down valuations.
Market prices have risen very quickly in the area.
If a real estate market is very hot and its prices are rising quickly, it's possible that appraisal values won't be able to keep up with market prices. Appraisal values are determined by similar sales in the area, so if sales at higher values haven't happened yet, valuations may come out inaccurately low.
The home appraiser does not have enough expertise in the local market.
It's important to find an appraiser with experience in a particular neighborhood when having a home valuation done. If a home appraiser is not experienced with the neighborhood in question, it's possible that the resulting valuation could be inaccurate or unexpectedly low.
To learn more, contact a company that offers home valuations.
Share21 September 2021
Once I paid of the mortgage on my house, I decided I wanted to buy an investment property. I had no idea that the buying process would be different, but it really was. There were so many things to consider that I hadn't thought about, and even the loan application process was different. It occurred to me that if I didn't know about it, others likely didn't either. I built this site to help others see what I went through buying my first investment home. I hope that it helps you to approach the process with more confidence and understanding.
