The most important decision required when submitting a purchase offer to buy a home is how much to pay. Many real estate buyers benefit from proposing a price that is less than the asking price of the seller. Prospective home buyers can gain a better understanding of the value of a specific property by obtaining an independent appraisal before making a purchase offer.
Homeowners who are selling their personal residence may have a slight bias in regard to its true market value. People tend to develop an emotional attachment to their home, especially if the value of the property has been enhanced by unique structural improvements. The more dissimilar a home is to other local properties, however, the more difficult the home is to appraise.
There is no need to pay for an independent appraisal until you are certain that you are ready to move forward with a purchase offer. One of the main factors influencing the market value of a home is the average price of recent comparable sales in the local area. It is the presence of certain types of home structures that may increase the need for an up-front appraisal.
From the street, all of the homes in a neighborhood might look similar. However, some of the houses may have basements that have been converted into living space. The true market value of a finished basement cannot be readily determined if there are no comparable sales in the area. Even the property tax records may have an inaccurate assessment of the current value of a finished basement, relying instead on original cost.
If a home seller has earlier added an outdoor pool to their property, the seller may have included the cost of the pool in the price of the home. If the neighboring homes were not also built with pools, the market value of one outdoor pool is somewhat difficult to determine. For a few home buyers, an outdoor pool might even be viewed as a potential liability.
Stand-alone building lot
Many homes are not part of a subdivision and may be situated on a larger parcel of land. Homes that are not in a subdivision may also have unique architectural features. As a result, there are fewer comparable home sales on which to rely when determining market value.
Licensed appraisers perform valuations in accordance with a professional code of ethics. You may be able to use an independent appraisal to justify a reduced sales price in a purchase offer. Contact a real estate firm for more information about single-family homes for sale.