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    Step 17 to Selling Your Home: The Appraisal

    If the buyer is using a mortgage to buy your home then the lender will require that an appraisal be conducted. So what is an appraisal? Read this blog post to find out!

    Who orders the appraisal?  The buyer’s mortgage lender orders the appraisal, but the buyer pays for it.

    When does the appraisal occur? Usually during week day hours in the first 2 to 3 weeks of being under contract.

    Do I need to attend the appraisal? No, you will not attend the appraisal. Instead, we’ll meet the appraiser at your home and walk him/her through the property. We’ll go over the comps and state our case as to why we think the purchase price is justified.

    How long does the appraisal take? Usually about 30 minutes.

    How long until we know if the property appraised for the purchase price?Usually a week to 10 days after the appraisal appointment.  Once the report is written, the buyer’s mortgage lender forwards it to the buyer to let the buyer know whether the property appraised at the purchase price, below the purchase price, or above the purchase price.

    If the property appraised at the purchase price, nothing further needs to be done and the closing process will proceed forward as planned.  If the property appraised for less than the purchase price, we have a problem. That means the bank will only give the buyer a loan for the appraised value.  In this case, the buyer will often come back to us and ask to renegotiate the purchase price down to the appraisal price.  If we say no then the buyer has to come up with cash at closing for the difference between the appraisal price and the purchase price and many buyers can’t or won’t want to do that. For instance, if the purchase price is $300K, but the appraisal only came in at $290K and we will only agree to lower the price to $295K then the buyer has to decide if he or she is going to bring an extra $5K on top of the down payment and closing costs to closing or walk away from the deal.  If the buyer walks away, his or her earnest money is usually refunded in the case of a low appraisal.

    NOTE: If I were the buyer’s agent, I would be advising my client that it is ill advised to overpay from appraisal.  With that being said, if I am the buyer’s agent and I also feel that the appraisal does not reflect the value of the home, I work with the listing agent in that case to try to appeal the appraisal.  It is VERY rare to get an appraisal amended, but it is possible.

    Also, keep in mind that for government-backed loans (FHA, USDA, and VA) the appraisal stays with the home for SIX months.  So if you were to not negotiate with say an FHA buyer on an appraisal cut, then relist and go under contract with another FHA buyer, the appraisal will be the same.  It is most advantageous to everyone to work together and create a winning scenario.

    Questions?  Call 717.963.0016 or homesalesinyourarea@gmail.com.

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    Gina Casner

    In 2016, I began my tenure in real estate as a licensed Executive Assistant for a leading real estate training coach and subsequently for high-producing real estate teams. I very quickly fell in love with real estate and by 2019, I transitioned into personally helping clients turn their dreams into keys. After dozens of transactions, I have been dubbed the “unicorn hunter,” finding out-of-the-box solutions for clients looking for a home with unique requirements. In addition to managing my real estate practice, I am involved in providing community education on responsible home ownership through my exclusive Path to Home Ownership workshop series. I also am the founder of Chronically Strong, an organization that promotes mental health awareness and suicide prevention in our local communities. I take a holistic and individualized approach to real estate. Buying or selling a home in Central PA can be complex, sophisticated and often a deeply personal endeavor. Your experience should mimic the high level of customer service all of my clients have, while being very specific to your own individual needs. I work with a team of experts to provide a full, complete experience that only a cohesive team can consistently provide. Working with us, you will be given personal attention in every aspect of your home buying and selling experience with the professionalism and consistency of a thoughtful business model. And yes, superior results will follow! On a personal note, I attribute my success not only to my passion for helping clients execute on their next “big move”, but also to my knowledge regarding the psychology of buying and selling. My clientele works in diverse industries with an emphasis on technology, finance, medicine, law, and business. My real estate practice has grown successfully and consistently thanks to the repeat business of happy clients and their introductions to friends, family and neighbors. This track record is only possible because we deliver both results AND an enjoyable experience. Growing up, my family moved frequently all across the continental U.S., but you will hear me say that I am from California because that is the longest place that I lived during my formative years. Moving became a way of life for my family and each place I lived became a part of my story. It taught me that our home truly is the foundation of everything in our lives, and it is this belief that compels me to work hard for my clients when they are buying or selling their home. In many ways, our home becomes a part of our identity, an identity and memory that should be honored. I have been accused of being tenacious and super honest. I like to win (for my clients) but do so with a calm demeanor and a smile. I live in a raised ranch home in Lower Paxton Township with my main squeeze, my teenage son, and our very spoiled dog, Ginger. I have mad faith, and truly believe that each and every one of us is capable of great things. I graduated from Penn State University with a Bachelors’ in Sociology. There is a running joke in my family that every day I go to real estate school because every day my clients teach me something new. I continually invest time, money and thought into the latest sales, marketing and negotiation techniques. Why? Because I believe that you deserve to have the best working for you. I want to live life on my own terms, and am committed to helping you do the same. Would you like to work together? Please reach out. I look forward to hearing from you! Gina

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