If you are considering buying a Ramona home or selling a home then you will experience a real estate appraisal. Even if both the buyer and seller agree on a price for the Ramona home, it does not mean the deal will go through until after an appraisal has been performed. For example if a price of $250,000 is agreed on, but the appraisal comes back and says the house is only worth $225,000, then the mortgage company will not be able to loan money for that deal.
When this happens, the deal often falls apart because neither party is either able, or willing, to make up the difference between the agreed upon price and the appraisal price. This is why it is so important to be ready for the real estate appraisal and to do everything you can beforehand to make sure the home will appraise for over the asking price.
Typically a Ramona real estate appraisal that comes up short of the agreed upon price, called a short appraisal, happens in slow or declining housing markets. With a lack of comparable sales or sales losing prices, it is hard for appraisers to accurately determine the value of a home.
A big problem is when the housing market slows suddenly. This means that the comps that were sold just a few weeks prior are no longer accurate. If foreclosures or short sales are involved it makes it even more difficult to get an accurate appraisal.
The problem of an appraisal has been compounded by the HVCC, or the Home Valuation Code of Conduct, that went into practice in 2009. This keeps Fannie Mae and Freddie Mac lenders from having any direct contact with appraisers. This has resulted in many lenders going through appraisal management companies to perform the appraisals. The problem is that this process often includes many appraisers with little experience or training in the area they are appraising.
Appraisals are a stressful time for both the Ramona buyer and the seller, but each party can do different things to help their case.
If you are a Ramona buyer you should contact your lender and ask for a list of appraisers from your county. You are the one paying the appraiser, so don’t feel bad about being picky or asking questions. Once you have the list and you start contacting appraisers, make sure they are certified for residential appraisals.
Commercial and residential appraisals are two completely different procedures. Don’t be talked into taking their commercial credentials as the same as residential. When you schedule the appraisal, make sure it is a time that you can meet the appraiser. You want to be there when they walk through the home and share any insight that they might have.
If you are on the selling side, start with getting an appraisal before you even list your Ramona home. A good place to start is online or with a real estate agent that you are going to use to sell your home.
The Ramona real estate appraisal will give you a good idea of what you can sell your home for. The process can also provide clues as to what areas of improvement to your Ramona home would make it more valuable.
Make sure you give a copy of this appraisal to the buyer’s agent before they have their appraisal done. The last thing Ramona sellers should do is to walk through the pre-listing appraisal with the appraiser. Nobody knows your house or Ramona neighborhood as well as you do and you may be able to shed light on areas that the appraiser would miss.