In 2024, the average home price in the United States alone was $420,357. This is much higher than the prices of homes in previous years. As the housing market continues to evolve and prices tend to keep getting higher and higher, it is only natural that you want to get as much as you can when you sell your home.
Can I sell my house for more than the appraisal value is a very good question. You might also be wondering about the appraisal value vs. sale price and how they might differ. But this is a real question to think about.
Can you sell a house for more than the appraisal, or do you have to settle with what the appraisal offers you? Keep reading and learn more about the details below.
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What is an Appraisal?
Whether you can sell your house higher than the appraisal is a good question, but you should first know what an appraisal is. An appraisal has to do with finding the sale value of your home.
Usually, the value of your home is determined by an expert. The expert will assess your home in various ways. For example, the expert may examine how large your house is, what kind of condition it is in, the year it was built, how many rooms it has, if it has any special features, and so on.
Various things can affect the appraisal price of a house. For example, if you just got a new roof, this will likely increase the value of your home since that is a feature many homebuyers look for when buying a house. On the other hand, if your roof is old and worn down and desperately in need of replacement, this will likely reduce the value of your home to some extent.
The Details
There are also other things to consider like special features. For example, if your house has solar panels, this will count as a bonus since many houses don’t have solar panels and are increasingly sought-after by homeowners. Having a pool may also benefit the appraisal value of your house since, after all, having a nice pool is a luxury and a big bonus for those who can afford it.
There are also more minor things that may affect the house value. For example, the price may change slightly if a room or several rooms in the house have been remodeled recently, if the walls have been painted, if the floors have been replaced, and so on. Anything that makes the home more favorable to potential homebuyers will likely increase the price of the home to some extent.
On the other hand, anything that makes the home less attractive to potential homebuyers will most likely decrease the price of the house. For that reason, you should seriously consider the condition of your home before you get an appraisal. After all, you want to get the best price for your home you can.
How Does an Appraisal Affect a Mortgage?
A home appraisal has a huge impact on a home mortgage. This is because getting a loan for your house and the value of that loan has everything to do with how much that house is worth. This is due to the fact that a lender will only give you so much money for the loan based on the price of your house.
For example, if your home is not worth very much, it wouldn’t make much sense for a lender to give you a huge loan. After all, you could accomplish whatever you need to accomplish with only a small loan for a relatively low-priced or small house. Knowing the appraisal value will ensure that the mortgage lender will not give you more money than what you need to work on your house or do whatever else you need to do.
On the other hand, if your house has been appraised and valued at a very high price, the opposite will be true. Your lender will give you more money for the mortgage since you will require more money to work on or maintain such an expensive house. Besides ensuring that the lender doesn’t give you more money than necessary, a home appraisal also ensures that you don’t borrow more than you need to when getting a home loan.
Keep in mind that an appraisal is only an estimate of your home value. The actual selling price might vary from the appraisal price by several thousand dollars. However, you should also remember that an appraisal is a very accurate estimate.
While the price might vary in reality, it is still important to keep the appraisal price close in your mind since it is the number that most people will care about and remember.
Should I Get an Appraisal Before Listing?
It depends. Getting an appraisal before listing may seem like a good idea, but it could actually be a very bad idea. This is because you may think that the price of your home is much higher than it is in reality.
If this is the case, then your house’s appraisal value will be much lower than you realized and it will be hard for you to sell it at a higher price. Even if you think that your house is worth a lot of money, you still might want to be wary of getting an appraisal because it might still be lower than you expect.
But how will anyone know the value of your home if you don’t get an appraisal? Usually, a real estate agent will help you by comparing your home with similar homes that are relatively the same size, age, and so on. Then, the agent will match the price of your home with those homes.
That way, you will be on the same level as the competition. There are, of course, certain instances in which getting an appraisal may be beneficial. You just need to think twice about it before you decide to go through with it to make sure that you get the result you want (or at least close to it).
How Much Will the Appraisal Cost Me?
An appraisal usually does not cost all that much. The exact price will depend on various factors such as your location, your individual house, the appraiser you use, and so on. Usually, you will have to pay between $300 and $450.
You will rarely have to pay more than this range. You might think that this is a bit expensive, but this is the price you pay for finding out the value of your house.
How to Sell Your Home for More Than the Appraised Value
Can you list your house higher than the appraisal value? The answer is yes, but you may want to think twice about it. If you aren’t happy with the original appraisal price of your home, you might want to consider getting a second opinion from another appraiser.
Or, you can ask your original appraiser to look over your house a second time. Whatever the case, getting a second appraisal may raise the price of your house somewhat so that it is more like what you want the house to be valued at. However, if you still aren’t happy with the value of the house, you can try listing the house above its appraisal value.
Keep in mind that if you do this, it may take a long time for your house to sell. But if you stand your ground, the property will likely sell at some point and you’ll be able to get the money you want for it.
Avoid a Bad Appraisal
One thing you should look out for is a bad appraisal. A bad appraisal is when a house is appraised at a price that is lower than what it really is. Even expert appraisers can make mistakes if there are certain factors that may cheapen the appearance of your home.
The appraiser themselves may also be the problem. Remember that you should always choose a high-quality and professional appraiser with plenty of experience appraising and valuing houses. If you choose an appraiser who has virtually no experience in assessing houses, you could easily end up with a bad appraisal and a home value that is much lower than it should be. What Causes a Bad Appraisal
Besides the quality of the appraiser, several factors on your end may result in a bad appraisal. For example, if you haven’t cleaned your house before the appraisal, this can make your house look run-down and cheap. You should also make sure that minor details are in-check and look great.
This includes the condition of light switches, door handles, drawer handles, plumbing, paint, and so on. You should also tell the appraiser about any renovations or redesigns that you have done recently. New renovated homes often sell for more than those that have not.
The main goal is to make sure that your house looks as good as possible before the appraiser arrives. That way, the appraiser will have a good first impression of the house and will hopefully give your home a good price as a result.
Sell With a Cash Offer
You could always try selling your house via a cash offer for a more direct route. If someone wants to buy a house with cash, they will not need a loan.
For that reason, a home appraisal won’t even be necessary in the first place.
While there are not too many good cash buyers out there, there are still a few high-quality choices that you can choose from like iBuyer.com.
This is an all-cash buyer that has plenty of experience buying houses in this manner. So, if you want to part with your house immediately and don’t want to deal with the home appraisal process, selling your house to a cash buyer may be your best and most convenient option.
Get Another Appraisal
Getting another appraisal is a good way to see if you can get the appraisal value you want for your home. The first appraisal you got may have been a bad one.
If you get a second one and ensure that your house is as attractive as it can be, the second appraisal value will likely be much better.
Negotiate
If you are not happy with the appraisal value of your house, you can always negotiate. You can tell the appraiser about the upsides of the property. For example, suppose you replaced all the windows or got a new roof.
Maybe you recently renovated the bedrooms or replaced the floors. Whatever the case, be sure to negotiate rather than settle. That way, you won’t have to deal with a home price that you know is far too low.
How to Handle a Low Appraisal
Handling a low appraisal can be challenging. However, if you know what to do, it will be much easier.
There are a few things you can do to help. As mentioned before, you can try negotiating with the appraiser. This may help, or it may not, depending on how lenient the appraiser is.
You can also tidy up your house and get a second appraisal in hopes of getting a better second opinion.
If the appraiser is not willing to budge, or if you don’t want to use a traditional appraiser in the first place, you can always consider doing an online valuation with iBuyer.com. That way, the process will go much more smoothly.
Online Appraisal With iValuation
If you want to avoid traditional appraisers, you should opt for iValuation with iBuyer. This is a very easy tool you can use online that will help you determine the value of your home. You also won’t need to go through the same hassle as you would when dealing with a traditional appraiser.
