If you’re thinking about selling your house then you are probably trying to figure out what your selling price might be. Part of that process is getting an appraisal (or valuation) on your home. So, if you’re wondering, “Can appraisals affect the selling price on a house in Santa Monica CA?” then we can guide you! We buy houses in Santa Monica California and this recent blog post will surely help you understand how appraisals affect the selling price.
When selling your house, you’ll be juggling a lot of numbers!
- There’s the asking price – the price you WANT to sell your house for.
- There’s the appraisal or valuation – the price that a real estate professional thinks you should try to sell your house for.
- There’s the selling price – the price that someone will ultimately pay for your house.
Can Appraisals Affect The Selling Price On A House?
Here’s the answer:
An appraisal should probably affect your asking price but it won’t affect the selling price. Here’s why…
An appraisal is an educated guess. When you want an appraisal, the professional who gives you the appraisal will usually find the number based on what other comparable homes in the area have sold for recently.
They’ll look at several factors (including, but not limited to the number of bedrooms or bathrooms, whether the basement is finished or not, etc.). Of course, it’s just an educated guess based on research, and there are other factors that may influence the price beyond the appraisal.
The appraisal will highlight things you want to be aware of. It will show you what other people are willing to pay for a property and often what they consider to be important factors in the area.
The appraisal will then help you select an asking price that potential buyers seem willing to pay. For example, you might choose an asking price that is higher than the appraisal because your house is a better house, or you might choose an asking price that is lower than the appraisal because your house needs some work.
The Bottom Line
The appraisal is a guide; an educated guess. But you should also be aware that the appraisal is not always correct. There are many factors that determine the sale price of a house and an appraisal is only a starting point. Therefore, it won’t likely influence the selling price.
Are You Thinking About Selling Your House?
Why bother with an appraisal at all? Why bother with showing your property to a bunch of strangers, and waiting months while they decide whether or not they want to buy. You can get a fair all-cash offer from us to buy your house fast and then you don’t have to worry about getting an appraisal, or listing the house, or showing your property, or negotiating.
If you are ready to sell your house in Southern California fast, get in touch with us! We’re professional Santa Monica CA home buyers and we offer cash for houses in SoCal. Get the process started today!