Your Tulsa home for sale is worth what the appraiser SAYS it’s worth!
We use to tell home Sellers that their home is worth what someone is willing to pay – but now we add that their Tulsa home for sale is worth what the appraiser says it’s worth! The market generally dictates the value of your Tulsa home for sale, but what happens when the appraised value comes in below the sales price?
Appraisers identify comparable sold properties to the subject property and give allowances for differences, whether positive or negative – these are called “adjustments.” Appraisers try to compare apples to apples – not apples to oranges.
Generally speaking, the comparables (comps) used by the appraiser must be within one mile of the subject property and within plus or minus 15% square feet of the dwelling. So, if you are selling a two-bedroom, 1 bath home in Florence Park, the appraiser is not going to compare it to a two-bedroom, 1 bath home located in Brookside. While both may be similar properties in midtown, the two areas are more than a mile apart.
You can compare a two-bedroom home to a three-bedroom home IF most other criteria are the same. But you can’t compare a two-bedroom, 1 bath, 1-car garage home to a three-bedroom, two bath, no garage home. Also, if the subject property is extremely updated, the appraiser will try to find comps of other sold properties equally updated.
Ideally, the appraiser will compare properties sold within the past six months. This becomes more of an issue when appraising a home in March or April when most of the comparables were sold during the winter months.
Your Tulsa home for sale is worth what the appraiser SAYS it’s worth!
Seller concessions further muddle the appraisal process. While it is typical in some price ranges for the Seller to assist the Buyer with closing costs, that information on closed properties is not currently available to appraisers through our MLS (Multiple Listing Service). Occasionally we will get phone calls from Appraisers asking whether or not Seller concessions were part of a contract.
Tulsa Home Sellers – be aware that while someone may be willing to pay $150 per square foot for your beautifully remodeled home, it must appraise for that amount before a financial institution will lend that amount to your home buyers. Also know that it is better to provide the Appraiser as much information up front detailing your home improvements that add VALUE to your home versus trying to modify a low appraisal after the fact.
Appraisals are an integral part of the home selling process, so don’t ignore this critical factor. Help your appraiser out, and make sure he is comparing apples to apples!!! If I can answer any questions, don’t hesitate to call 918-852-5036!
