Drop PMI, Save Hundreds All With a Home Appraisal by Liz Suto
Just about everyone who sells a home will have to go through an appraisal because the buyer's lender wants to know what the home is worth. Other reasons you may be involved in an appraisal include divorces, refinances and other property settlement issues.
Sandy Struss, owner of Foothills Appraisal, has been appraising homes in the
If your home is in a new development, appraisers find "comparables" that have recently sold based on the same model. When the appraiser comes to your home, it's a good idea to have a list of upgrades from your home's base model available, along with any upgrades you've made. Unfortunately, appraisers that don't usually work in your area may not be as familiar with the base model of your home and may not be aware that you added a balcony or enlarged your patio. Those extras may add value to your home.
One misconception Struss finds in homeowner's perception of an appraisal is that upgrades are applied dollar-for-dollar to the value of the home. "Cost does not always equal value," she says. "If people spend $50,000 on the pool, it doesn't add that much to the home value." She looks to see what the market is paying for an upgrade and applies only that amount.
Copyright © 2006 by Liz Suto. Liz Suto is a professional writer, real estate agent and Anthem Arizona resident. Look for her articles at the PhoenixAz Insider website and in Phoenix area magazines and newspapers.
