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John P. Sharp, Premium Real Estate Broker with Skyline Properties, Inc.

(425) 230-2525

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  • Home
  • Selling
    • Selling
    • Step 1: Preview Your Home
    • Step 2: Prepare Your Home
    • Step 3: List Your Home
    • Step 4: Recieve Offers
    • Step 5: Accept Best Offer
    • Step 6: Contingencies
    • Step 7: Review Title
    • Step 8: Appraisal
    • Step 9: Escrow
    • Step 10: Closing
  • Purchasing
    • Purchasing
    • Step 1: Get Preapproved
    • Step 2: Write Your Needs
    • Step 3: See Homes
    • Step 4: What to Look For
    • Step 5: Know Your Home
    • Step 6: Make Your Offer
    • Step 7: Appraisal
    • Step 8: Title
    • Step 9: Disclosures
    • Step 10: Closing Day
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    • Home
    • Selling
      • Selling
      • Step 1: Preview Your Home
      • Step 2: Prepare Your Home
      • Step 3: List Your Home
      • Step 4: Recieve Offers
      • Step 5: Accept Best Offer
      • Step 6: Contingencies
      • Step 7: Review Title
      • Step 8: Appraisal
      • Step 9: Escrow
      • Step 10: Closing
    • Purchasing
      • Purchasing
      • Step 1: Get Preapproved
      • Step 2: Write Your Needs
      • Step 3: See Homes
      • Step 4: What to Look For
      • Step 5: Know Your Home
      • Step 6: Make Your Offer
      • Step 7: Appraisal
      • Step 8: Title
      • Step 9: Disclosures
      • Step 10: Closing Day
    • Services
    • Contact Us
    • About
      • About
      • Privacy Policy
      • Terms of Use

(425) 230-2525

John P. Sharp, Premium Real Estate Broker with Skyline Properties, Inc.

Signed in as:

filler@godaddy.com

  • Home
  • Selling
    • Selling
    • Step 1: Preview Your Home
    • Step 2: Prepare Your Home
    • Step 3: List Your Home
    • Step 4: Recieve Offers
    • Step 5: Accept Best Offer
    • Step 6: Contingencies
    • Step 7: Review Title
    • Step 8: Appraisal
    • Step 9: Escrow
    • Step 10: Closing
  • Purchasing
    • Purchasing
    • Step 1: Get Preapproved
    • Step 2: Write Your Needs
    • Step 3: See Homes
    • Step 4: What to Look For
    • Step 5: Know Your Home
    • Step 6: Make Your Offer
    • Step 7: Appraisal
    • Step 8: Title
    • Step 9: Disclosures
    • Step 10: Closing Day
  • Services
  • Contact Us
  • About
    • About
    • Privacy Policy
    • Terms of Use

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A calculator, cash, and a miniature house sit atop paperwork used to buy a new home.

Selling Guide - Home Appraisal

Step 8: Appraisal

When a buyer has financing, a home appraisal is required for lenders to approve their loan.  Home insurance companies use the appraisal as the basis on their coverage. A lender will not lend more than the unbiased valuation of a home (i.e., what the home is worth).  Appraisals are performed by an independent party with no interest in the property.  


There are three types of appraisals: 

  1. Cost Approach. The appraiser determines how much it would cost to replicate your property at today's prices.  Insurance companies and construction loan lenders will use the cost-approach.  This is an ideal approach for unique homes that may not easily compare to others.
  2. Comparative Market Approach.  Much like a comparative market analysis or broker's price opinion, this method focuses on details of the property, but also compares the home to others which may be highly similar.  The neighborhood, street features, and market trends are taken into account when determining the value of the home. 
  3. Income-Capitalization Approach.   If your property is used as a long-term rental or a short-term rental, you may need an income-capitalization approach to determine its true value.  


The buyer's lender will choose the method(s) used to appraise the property.  As mentioned previously, if the appraisal of the home is less than the offered sale price, the buyer will have to either make up the difference, reject the deal, or you can lower your home price to match the appraisal.  

We are here to help.

Ready to sell your home?  Schedule an initial consultation with John P. Sharp today.  Let's discuss your real estate goals and how we can help you achieve them.  

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tip!

Detail your services

Avoid a low appraisal.  With an agent like John P. Sharp, who is certified as a broker's price opinion professional, you can be sure that your home is priced accurately before listing your home. This is a small part of our real estate services. A simple comparative market analysis may not be enough to properly compute the value of your home.  You are almost through the Selling Guide! Click ahead. 

Step 9: Escrow
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John P. Sharp, Premium Real Estate Broker with Skyline Properties, Inc.

19515 North Creek Parkway, STE 214, Bothell, Washington 98011, United States

Call us today at 425-230-2525

Copyright © 2021 John P. Sharp

Premium Real Estate Broker with Skyline Properties, Inc.  

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