You must be careful when looking at an appraisal for a house or going to buy. An appraiser will put comparable houses and comparable selling prices of those houses in the appraisal. One thing to look out for in the appraisal is where these comparable houses are located. Do your research and see if the comparable houses are in the same school district. You don’t want to pay a premium price for a house in a good school district only to find out that comparable houses in the appraisal or in a different school district. You may end up with the short end of the stick in regards to the school district.
Without doing your research yourself, you may end up paying a lot more for a house in a worse school district.
Things to look for in the appraisal that you can easily research and find out for yourself are as follows;
Find the addresses of the comparable homes and make sure that they are actually located in the same neighborhood as a house you are going to buy. You should also take a look at the features of the comparable homes. Make sure the comparable homes have the same number of bedrooms, bathrooms, floorspace, closets and square footage.
Really, should try and find a few sales of homes in your neighborhood that are almost as good as the house you’re going to buy and a little better than the house you’re going to buy. If you determine that you house you’re going to buy is better than the two inferior houses but not worth as much as the two other houses that are better, you now have a clear idea of what the house you are about to purchase is worth.
Generally you will not be able to find perfect comparable houses for an appraisal. You have to take into consideration the difference in the home size what features it presents in the condition the house itself along with the location. If there is a big difference you should not use the comparable homes found in the appraisal to judge the value of the house you’re going to buy.
On trying to tell you here is that appraisals are very subjective and can be misleading when it comes to determining the value of the home. Do your own research and you will be much better off and a lot happier with your final decision.