In today's fast-paced Orlando real estate market, home appraisals coming in lower than expected is a trend happening more often than one would think. It can be very devastating to get a low appraisal, so being prepared and understanding the real estate market is crucial. 

There are a few reasons why home appraisals can come in low: 

  1. The market could be moving too quickly. Appraisers do not look at pending sales or active sales; they only look at comparable homes that have been already sold in your community. As a result, if the Orlando market is moving too quickly, the central Florida houses that are pending sales will not be considered when your home is being appraised. 
  2. You never want to be the most expensive house in the neighborhood. Your home should be priced in the mid- to lower-range and be based on previous sales.
  3. Your house can be in functional obsolescence. This means that homebuyers may not be looking for certain features in your Orlando home. An example of this would be if you made additions that give your home a unique floor plan. You would need to find a buyer who has the same or similar taste or desires; otherwise, this could weaken your home appraisal.
  4. Improvements made to your home may not be as valuable as you think. For example, a new AC unit is not considered an adjustable upgrade to increase the value of your central Florida home since it is considered a maintenance item. Examples of home improvements that would increase your home value are granite counter tops, wood flooring, tile flooring, etc.
  5. There may not be enough homes in your area that were sold in the price range you are expecting. This often occurs in rural areas or large lakefront properties, which are found a lot in central Florida. Appraisers sometimes look at other property values as far as 5-10 miles away when conducting market research. This can lower the value of your home depending on the surrounding neighborhoods.

To make sure your home appraises, ensure that the house is clean and treat the appraisal like an open house or a showing. You could even play some light jazz music in the background during the process! The bottom line is that you want the appraiser to feel good while he or she is in your home. So you should always put your best foot forward in preparing for the appraiser!

Before the appraiser comes to your Orlando home, follow up with your real estate agent to make sure that he or she gives the appraiser the improvements that were done to your property. That will allow the appraiser to make the necessary adjustments when determining the value of your central Florida home. It is also a plus for your listing agent to be present for the appraisal to speak to the appraiser and do what they can to make sure the house appraises.

As always, we are here to help you! Please feel free to Contact Us, and I hope that I have helped you get real estate smart.

 

The Miller Realty Group is a successful real estate team who provides real estate solutions for residential homeowners in the metro Orlando real estate market, including Lake Mary, Longwood, Heathrow, Sanford, Winter Park, Winter Springs, Altamonte Springs, Maitland, and surrounding cities. Founded in 2006, The Miller Realty Group has transformed themselves into one of the top real estate teams in Central Florida.