Pre-Purchase Appraisal

Buy with confidence, not uncertainty

Buying a home is exciting, but stress and uncertainty are often involved. Many buyers retain a Buyer Broker to represent their best interests, since listing agents represent the seller and are no longer legally required to be fair to buyers.

Many lenders today obtain “drive-by” appraisals that rely on tax-office living area. When credit and down payment are good enough, the loan closes — and quite often the buyer gets a substantially different home than tax records indicate.

Six times out of ten, tax records are wrong about home size. Living area substantially influences market value and what buyers should pay.

A pre-purchase appraisal identifies a home’s true living area and market value before you make an offer. It also flags any major condition problems, helping buyers avoid costly mistakes. Buyer Brokers reduce their own liability by recommending a full interior & exterior inspection plus a measured floor plan — issues can be negotiated and resolved before a lender gets involved.

Highest possible vs. most probable

The value listing Realtors use is the “highest possible” selling price; appraisers estimate the “most probable” selling price for lenders and buyers within a reasonable marketing time. There is often a substantial difference between these two values.

• Gives Realtors and home buyers negotiating leverage.
• Helps unrealistic sellers understand their property’s true value.
• Sellers are more likely to accept an offer supported by an accurate appraisal.
• Prevents your deal from falling apart or being delayed.

Even if emotional buyers want to overpay, they are not justified in doing so — a similar property in a similar location can be acquired for less. And even if buyer and seller agree on the “highest possible” price, the sale falls through when the mortgage appraiser reports the actual value to the lender.

The appraiser is trained to be an impartial third party — a vital “check in the system” that protects buyers from overpaying and lenders from over-lending. An appraisal is a lot more than a “price per square foot” exercise.

My real estate career started in 1977 with Sterling Realtors in the Park Cities, and I began appraising full time in 1983. Over four decades I’ve worked with thousands of Realtors and buyers, and received many awards for appraisal accuracy from national relocation companies. I welcome the opportunity to correctly appraise your buyers’ dream homes.

Warmest regards,
Lyle F. Gallagher