When you are in the market for a second home, one part of the process of obtaining financing for the property entails getting a satisfactory appraisal. Many buyers do not realize that while the process is the same, it can get tricky to obtain an accurate appraisal for a second property. Some of the factors contributing to this fact include the difficulty of assembling a competitive market analysis or dealing with appraisers that are not familiar with the vicinity or particular locale.
Appraisers Are Challenged With Finding Comps for Unique Properties
One of the aspects of an appraisal is the comparison of other, like kind properties in the area. For some homes this may not be possible. The more unique a property gets, the harder it will be to find other such properties to compare it with, leaving the appraiser to decide on the value of the home based on price per square footage. The price per square footage of a home does not take into consideration the amenities, unique qualities or special features of the home – leading to the potential of a miscalculated appraisal. An example is a house that is situated directly on a lake or one that has a unique, one-of-a-kind structure unlike others in the area.
Out-of-Area Appraisers May Not Recognize Specific Features
Another reason to be extra careful during the appraisal process of your second home, particularly special properties is the fact that some appraisers come from out of the area and they may not realize the home’s uniqueness. For instance if you are vying for a property that features a ski in, ski out area but the appraiser does not realize the value of this feature, you may lose out on a significant amount of value. One way to deal with this is to facilitate communication and access to both the Realtor and your lender with the appraiser so that these things can be clarified in advance.
It is my strong recommendation to have an appraisal performed on your property if you are preparing to list it on the second home market. Not only will it serve as a great listing tool but it will also provide helpful knowledge of what you can expect going in to the market.
For further guidance or assistance with your real estate endeavors whether you are looking for your second home, the first home ever, a refinance or to sell your property – contact us today!