Main Line Buyer Agent – Understanding Appraisals


Understanding AppraisalsMany aspects of buying or selling a home can cause delays, but the appraisal can sometimes even result in cancellation of the sale, depending on a number of factors.
Sage Realty’s buyer agents in Main Line are dedicated to making the transaction as smooth as possible, but when a gap occurs between the seller’s listing price and the appraisal value, the process can get complicated. 

Why an Appraisal? 

Mortgage lenders want to be sure that they can recover any loss in the event a buyer defaults on a loan, which is why most banks and other mortgage companies require an appraisal before approving the loan. If that appraisal falls short of the asking price, the lenders are unlikely to approve a higher loan. When appraisals fall short, sellers either have to lower their asking price, or buyers have to come up with the difference before the sale can continue. The price gap between the listed price and appraisal, and the subsequent need to determine which party will cover the shortfall, often causes a delay or even cancellation of the contract. 

How Low Appraisals Happen

Currently, sellers are listing their homes with higher prices because of an increase in demand. However, appraisers are having a difficult time justifying these increases through comparable recent sales, which results in a lower appraised value. As a buyer agency in the Main Line area, Sage Realty has noted that features within certain neighborhoods also negatively affect the home’s appraisal value. These value lowering features include:

  • Poorly Rated Schools – Often are indicators of a lower income area. Higher rated schools can increase the home’s value.
  • Rental Properties – Have little to no effect if only a few exist, but a high concentration can lower surrounding property values. 
  • Homeless Shelters and Services – Indicate a lower income population, which can mean lower property values. 
  • Cemeteries and Funeral Homes – Reduce property values due in large part to the uncomfortable feeling cemeteries and funeral homes give some potential buyers.
  • Power Plants – Raise concerns about safety, pollution, and noise levels, thereby contributing to lower home prices near power plants and other factories. 
  • Shooting Ranges – Foster worries about safety and noise pollution from gun fire.
  • Hospitals – Are desirable to some buyers, especially boomers, but when the property is too close, the values actually decrease due to noise pollution problems. 

Expert Buyers Agency

To learn more about what influences the appraisal process, and how to prevent delays, contact the Main Line buyer agents at Sage Realty today!

Tags: , ,

Featured Testimonial

I moved to PA from Washington State and learned that realty is local. There were things that I thought I knew about buying a house previously but boy was I wrong. Linda was very patient with me but also did not hold back when she saw potential problems, and always made sure I had all the information I needed before making a decision and didn’t belittle concerns to just get a sale. Above all else, and this was the most important thing to me, Linda has a high ethical standard, is very transparent in her approach and is someone I trusted making one of the biggest decisions of my life. – A. Lindsay (Courtesy of Google)

 

Hear From Our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Sage Buyer Tips

Use Sage Buyer Tips to research the Main Line and stay up to date on real estate news. This online destination is chock full of resources for buyers and sellers: you can see our Main Line communities or explore Sage favorite places. Browse properties here and search other Main Line real estate. With Sage’s advice and experience, first-time buyers and those looking to upgrade can find homes best suited to their needs.