Most novice homebuyers put too much faith into a home appraisal. To the novice homebuyer, he or she unquestioningly accepts this property value as set in stone.

Homebuyers tend to think a written appraisal is more accurate than what they’re advised in person. If a seller is listing their home below the written appraisal on their residence, she or he can convince you their listing price is really a bargain.

Be careful of this scheme if a seller or real estate agent tries to impress you with how low the listing price is. While the possibility exists a property can be listed at a bargain price, a greedy seller or agent could present an inflated appraisal to impress you into thinking you’re buying a bargain priced property. If you encounter this type of situation, here are some facts you need to know about:

-Appraisals are time dependent. They’re only correct at one specific point in time. Be certain to check what date the appraisal was performed. If the real estate marketplace is truly fluctuating, an appraisal a month or two old may already be outdated.

-When were the comparable properties sold? The most important feature of the appraisal is the sales date of comparable home sales. An appraisal is based on the current selling price of homes in a community. You want these sales to be less than 90 days. If the local real estate market has been slow, an appraiser may need to go back six months to a year to obtain proper sales data. The older the sale, the less accurate the value in determining today’s value.

When on appraiser wants to make use of older comparable home sales, she or he needs to make adjustments for the price. To adjust recent home sales information, an appraiser ends up estimating the worth of the house.

It’s important to remember an appraisal doesn’t certify the value of a home, nor does it tell you exactly what a homes worth is. It is merely a professional’s opinion of what they think a property is worth.

Because of this fact, you’ll be able to question the accuracy of an appraisal. Don’t let the seller or their agent trick you into accepting their appraisal as the last authority. Use it only as a guide for the price of a home.

An appraisal leaves out essential details. The appraisal is determined by the assumption a house is totally free of any defects or issues. If an appraiser didn’t see a defect, his or her report will presume the issue is non-existent.

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