market value is important
This is (by far) the most important number to verify, during the buying process. On the one hand, you want to be sure that you are not overpaying for the property. On the other hand, lenders will want to make sure that there is enough equity in the home so that they can cover themselves if you default on the loan.
If you’re selling the home, a low appraisal may prompt the buyer to come back to negotiate a lower price. That’s why this number is important. However, in hot real estate markets, valuations may not matter as much. These days, in many places, eager buyers are happily placing bids well above the asking price.
Square footage matters
If the market value seems low, you should first look at the stated square footage. Home appraisers are expected to measure indoor and outdoor space. This means every room, every living space, and even the backyard. In reality, not everyone will be so perfect. Many appraisers think they can accurately track these numbers. Or they’ll just use the numbers already listed, without verifying themselves.
You should pay special attention to square footage. If the appraisal reveals significant differences from the tax records or property inventory, the overall estimated market value may also be inaccurate.
The number of bedrooms, bathrooms or garage spaces should also be correct. Although, as I said, mistakes happen. If possible, you probably want to have someone confirm these numbers with the appraiser when they are on site. Lastly, just make sure the report shows the correct number of rooms, locations, and square footage. You don’t want any official documents that show discrepancies.
