With the Smith Mountain Lake Real Estate market offering some truly wonderful vacation and retirement properties, it’s quite easy for buyers to quickly develop a ‘love affair’ over many of our current listings. There are times when a home’s market value (that is, the value perceived by the buyers) will actually outpace the appraised value. There can be several reasons how and why this happens… the buyers have invested time and energy into researching your home’s location area, etc.
The people at RealEstateABC.com have once again come to our rescue! They’ve written an article outlining many of the aspects of this situation and have formulated some recommendations as well. Here’s a quick excerpt:
Appraisals are performed for lenders, not buyers. The purpose is to justify the sales price so that the lender feels they are making a solid investment since the property is collateral for the loan. On appraisals, most weight is given to historical data – sales that have closed in the last four months.
The topics they touch upon for this informative article cover Appraisals, Preparing in Advance, Coping with the Challenge and Conclusions. Click here to read the entire article.