The Continential Condominium - Arlington
When you purchase a home or refinance a house in Arlington or Alexandria the lender orders an appraisal of the property’s value. the appraiser is an independent party unaffiliated with the bank. In today’s lending environment lending guidelines typically prohibit any communication or contact between lender and appraiser.
For purchases the appraisal is usually based on market value, what the market would probably be sold for. The appraisers look for three comparable sales and three comparable active listings. Adjustments for features (such as, square footage, a new kitchen or a garage) are made upward or downward against the subject property.
Appraisers are typically only allowed to look at comparables that are six months old or less. VA appraisers may only go back three months. Often this poses a challenge when there haven’t been any good comps for the subject property especially when the subject is an older, unique property.
The appraisal is a crucial part of the residential lending process in Northern Virginia. While appraisals are based on market data, at the end of the day it is someone’s opinion and it isn’t always in line with what homeowners and buyers feel the value should be. This disconnect can lead to a sale falling.
Before selling your home its important that we sit down and review the comparable sales. At that point, it’s important to ask yourself, will my property appraise for the price that I’d like to ask? When you are looking to refinance its a good idea to contact me and I will send you the most recent comps. If the comparable real estate sales aren’t in line with the value you need you can avoid wasting the $400 on a refinance appraisal.
