You have spent weeks possibly months marketing your home in the Kenai Real Estate market and have finally found a willing buyer. After some back and forth you have agreed upon a price and repairs and are ready to close. The only item standing in the way of the seller’s freedom and the buyer’s new home is the appraisal. Surprise, after all that time, work, money and drama the appraisal came back lower then your sales contract price.
Appraisers in the Kenai – Soldotna real estate market are very conservative; they are not going to push any boundaries.
It helps to remember that the purpose of the appraisal is to protect the banks/investors. It is not meant to help a buyer and seller negotiate the sale of the property. This can be a shock for unprepared sellers and buyers. Just because you have a willing buyer and a willing seller at a given price does not mean the appraisal will support the price.
Here is the kicker, if the buyer has to finance a home purchase they need a partner or investor (Mortgage Lenders). The bank or investor gets to make the rules for the appraisal. Most Kenai home sellers and buyers fail to consider how the investor will influence the transaction. Lenders do not wish to be stuck with a home that is not valued correctly.
The most simplistic rule an investor has is that the property can be sold for as much as was loaned. The most important consideration in the appraisal is what similar properties are selling for in your area. The operative word is “selling”. What other homes are being marketed at does not influence an appraisal value. The Kenai and Soldotna Real Estate market is diverse with custom homes of all ages, styles and conditions. Appraisers often have difficulty finding similar homes that have sold recently within close proximity of your home. If they can’t find comparable home sales they will lower the value of the home, regardless of what the seller and buyer have negotiated.
Your local REALTOR Glenda and Jason Feeken are experts in the Kenai Real Estate market and the sales process. We can educate you on what homes are selling and appraising for so you can have a smooth transaction that closes. Contact us today to answer any questions you may have on buying or selling.