There are three values for any home on the market:
1) What the seller thinks it’s worth: Some things are a matter of choice. What appeals to you may not appeal to someone else. Your idea of cooking may be to pop a frozen meal in the microwave while someone else prefers a gourmet kitchen with gas appliances.
2) What the buyer thinks it’s worth: Even in you plan on staying in your home forever, you still need to consider resale value in the event circumstances change down the road.
3) What a professional appraiser will think it’s worth: A mortgage lender will pay a professional appraiser to come up with a value for your home. If the appraiser’s value comes in below the sales price you and the seller agree to, you have a problem. You’ll either need to come up with more cash upfront or renegotiate the price. Since the lender is using the home as security, they need to know it’s actually worth what you’re buying it for.
The key to a successful purchase is to get those three numbers to align. If you’d like to receive a FREE comparative market analysis to see what your home might be worth, simply fill out the form below!