For sellers, the home appraisal can feel like a stressful, confusing process. Many don’t even know what, exactly, the home appraisal is or why they need one—which can lead to some common misconceptions about the process.
But the home appraisal is an important part of a home sale—and, as a seller, it is important you understand some of the misconceptions floating around about them.
So what, exactly, are those misconceptions? A recent article from realtor.com outlined common misconceptions many sellers have about the home appraisal process, including:
An appraisal is the same thing as an inspection. Home appraisals and home inspections are two separate things. While the inspection aims to uncover issues with the home (for example, maintenance or repair issues), the appraiser is there to assess the value of the home.
Appraisers work for the buyer. While the buyer has a vested interest in the results of your home appraisal, the appraiser actually works on behalf of the lender—not the buyer. The lender wants to make sure the money they’re lending the buyer (in the form of the mortgage) is a solid investment—so the appraiser is there to evaluate the property and make sure it is a solid value compared to the purchase price.
Bigger houses have higher appraisals. Just because you have more square footage does not necessarily mean your home will appraise for more than smaller properties in the neighborhood. Appraisals and home size are not entirely correlated; appraisals are based on a variety of factors, including comps and the condition of the property—so don’t expect your home to appraise higher than your neighbor’s just because it is larger.