An appraisal is needed whenever a home is purchased with a mortgage. An appraisal is a third-party professional opinion of home value. The appraiser considers the location, condition and features of the home, and compares it to other local properties that have recently sold.
In rural areas of Northwestern Wisconsin, home appraisals can be challenging. For example, Rusk County can see less than a dozen home sales in a month. The homes sold can be located miles apart, and vary widely in age, condition, and features. The appraiser may have to use older home sales or consider distant sales for like-kind comparisons.
Home appraisal fees in Wisconsin usually run between $300-$500, paid by the buyer. Usually, the appraisal value supports the purchase price, but there are times it falls short, causing an appraisal gap.
A buyer might have an appraisal contingency that allows them to cancel the purchase if an appraisal gap occurs. Otherwise, the appraisal gap must be resolved through one of the following:
- The buyer puts more money down to cover the appraisal gap
- The seller adjusts the price to match the appraisal amount
- Buyer and seller compromise, each contributing to the solution
- A new appraisal is ordered with supportive documents and/or comparisons
Sellers can help prevent appraisal gaps from happening in three ways:
- Pricing the home correctly for its condition and location
- Keeping the property in top condition for the appraiser’s visit
- Keeping records of all recent work done on the home, including building permits and contractor receipts, and sharing them with the appraiser
Whether you are buying or selling a Northwestern Wisconsin home, having good advice from the start makes all the difference! We offer free consultations and free Home Valuations with no obligation.
Six Lakes Realty is a locally owned family business with more than 45 years of experience. Contact us today for friendly, hometown service!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com