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Home Appraisal vs. Sales Price in Lafayette LA
Here’s an example that happened recently and why I’m writing this. I walked into a client’s house and they handed me an appraisal they just paid $500 for. As I looked at the properties used on the appraisal that helps determine the subject home’s value, I noticed a few things that make a big impact on most of today’s buyers. The home I was in had burnt orange walls in the kitchen, candy apple green paint in the kid’s rooms, and very dark granite countertops throughout! It was a good paint job and the granite was installed correctly but almost any buyer would look at that and know that there’s going to be some cost they need to consider because those paint and granite colors just don’t jive with most buyers of today. Now on the appraisal, I noticed homes with grey and white wall colors and gorgeous white granite throughout. This tends to be much more appealing to “most” buyers therefore they’re not worried about repainting the home or changing the granite so their offer will most likely be more!
To an appraiser, of course, he/she can see this. But Sherman Williams Burnt Orange and Agreeable Grey cost the same amount, granite is granite in “most” cases. Therefore to an appraiser, cosmetics don’t matter from a value standpoint as much if in good condition. But to a buyer, that’s potentially a $7,000 paint job and $6,000 in granite. Those 2 houses most likely will not sell for the same unless the seller paints the home first or drops the price to offset the cost of that paint job/granite. Now, will a buyer come along and love these colors? Of course, that’s a possibility. But to increase your chances of selling your home faster and for more money. Your home needs to be appealing and updated to what “most” people want. This will increase your chances of getting top dollar! An appraisal DOES NOT determine what your house will or should sell for!! It’s just an educated opinion of what the appraiser thinks of its value and is mostly used to show the bank the home is worth what the buyer is willing to pay when a price is agreed upon!
Realtors Can Give You An Accurate Sales Price
If you wish to get your home appraised before listing it is totally up to you. I decided to write this article to make people aware that spending $500 on an appraisal and expecting to get that exact number when it sells is just not realistic.