What Is a Real Estate Appraisal?

An appraisal is an independent opinion of a property’s value prepared by a licensed or certified appraiser.

When a buyer is obtaining financing, the lender may require an appraisal to help determine whether the property provides adequate collateral for the proposed loan.

The appraiser may consider:

• Recent comparable sales.
• Property size.
• Lot characteristics.
• Condition.
• Renovations.
• Architecture and floor plan.
• Location.
• Market conditions.
• Other property-specific characteristics.

The appraisal is separate from the price negotiated between buyer and seller.

Why Luxury Homes Can Be More Difficult to Appraise

Finding truly comparable sales can be more difficult when individual homes differ substantially.

A Cliffs of Gleneagles property may contain characteristics that are not easily reflected through square footage alone, including:

• Golf-course surroundings or views.
• Lot privacy.
• Custom architecture.
• Extensive renovations.
• Luxury kitchen and bath finishes.
• Pool and spa improvements.
• Outdoor kitchens and entertaining areas.
• Recently replaced major systems.

That makes accurate documentation and appropriate comparable-sale analysis especially important.

Factors Influencing Property Prices in Cliffs of Gleneagles

What Happens If the Appraisal Is Below the Contract Price?

The answer depends on the financing and appraisal provisions contained in the executed contract.

Potential outcomes may include:

• The transaction continuing under the original terms.
• The buyer contributing additional funds.
• The seller and buyer negotiating the price.
• The parties negotiating another financial term.
• A challenge or reconsideration of the appraisal when supported by appropriate information.
• Other rights or remedies provided by the contract.

Sellers should evaluate the specific contract and seek appropriate legal guidance when contract interpretation is required.

The Original Offer Matters

Appraisal risk should ideally be considered before an offer is accepted.

Negotiating an Offer on Your Cliffs of Gleneagles Home

Can the Appraisal Be Reconsidered?

In some circumstances, relevant information may be submitted through the appropriate appraisal or lender process for review.

Useful information may include:

• Relevant comparable sales that may not have been considered.
• Corrected factual property information.
• Documented renovations.
• Major improvements.
• Property features that materially distinguish the home from comparable properties.

A reconsideration does not guarantee that the appraised value will change.

Documentation Before Listing Can Help

Sellers should maintain records of significant renovations and improvements when available.

Those records can help Gary and Linda better communicate the property’s characteristics during pricing, marketing and the transaction process.

Pricing Your Cliffs of Gleneagles Home in Plano TX

Preparation and Condition Can Influence the Overall Value Story

Appraisers and buyers may both consider the condition and quality of the individual property.

For qualifying listings, Bale Real Estate Group’s Certified Pre-Owned Home Listing Program includes a professional pre-listing inspection at our expense.

Understanding observable property conditions before listing can give sellers more time to address important issues and document improvements.

Certified Pre-Owned Home Listing Program for Cliffs of Gleneagles Sellers

Watch Linda Bale Explain the Certified Pre-Owned Home Listing Program

Contract Management Continues After the Appraisal

Even after the appraisal issue is resolved, financing, title, contract deadlines and closing coordination still need to be managed.

From Contract to Closing in Cliffs of Gleneagles