Selling Highlands NC Real Estate, Appraisal Plays A Role
The appraisal process plays a role when selling Highlands NC real estate. This step will typically take place as part of the financing contingency. As a result, an appraisal can interfere with the sale of a home. Lenders will base loans off of appraised values and when appraisals are low it lowers the amount of money available to buyers. This requires homes to be priced at fair market value. Accordingly, a Highlands NC REALTOR will offer advice on pricing a home for sale. This price is based on research and market conditions and should be considered prior to listing.
Fair market value
What is fair market value? Ultimately, fair market value is the price that a buyer is willing to buy for a Highlands NC home for sale. However, in a crazy market, where inventories are tight, there are buyers paying over the asking price. This means that buyers will typically come to the table with the extra cash and financing will cover the appraised price. So, while this represents fair market value it is not equal to the appraised value.
Pricing a home to sell
A seller must choose the price for a home for sale. Typically this price will be determined from a comparative market analysis (CMA) conducted by a Highlands NC REALTOR. This process will suggest a fair market value for a home. The analysis will include recent sales, current listings, and the location and condition of a home. When a REALTOR suggests a fair price for a Highlands NC home for sale it is up to the seller to decide to accept it or not.
For a lender, the appraised value and the contracted price of a Highlands NC property should be similar. Ultimately, a mortgage can be in jeopardy when the appraised value comes in at a lower price. Quite simply, no lender wants to lend more than a home is worth. When an appraisal comes in low then a buyer has two options: arrive at the closing table with more money, or walk away from the transaction. A seller should price a home thoughtfully as pricing it too high can backfire.
Learn more about selling Highland NC real estate
Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to learn more about selling homes in Highlands NC. We welcome the opportunity to update you on the market while sharing a complimentary listing presentation at the same time. Let our knowledge and experience serve as your guide to selling Highlands NC real estate.
Click here to read “How Do You Challenge An Appraisal?” from Realty Times.