If you are thinking about selling or buying a home, then appraisals are an important part of the process. Appraisals are a key aspect of buying and selling homes, especially in the case that the buyer is using a mortgage secured from a lender.
Depending on the appraised value of the home, it can mean the difference between buying or not buying a home. Most people have relatively little control over the final value determined by the appraisal process. But it’s still important to know what kind of factors influence a home appraisal. There is a lot of misleading information about home appraisals out there, which can hurt people if they take them as fact.
1. Home Inspection and Home Appraisal are Different
A home appraisal is primarily concerned with providing a numeric dollar amount for the value of the home. A home inspection, in contrast, is meant to identify problems with the house, such as structural, plumbing, and electrical issues. Homes have to meet a certain level of condition before lenders will approve loans for them.
2. How Do Appraisers Value a Home?
Home appraisers will go through a property and make notes of all details to determine a fair market value for the house. Appraisers collect informations and compare it with other houses of a similar size and location. All real estate appraisers must be licensed and insured to conduct an appraisal.
3. What Information Will a Home Appraisal Include?
Appraisal notes will contain general comments about the property as well as side-by-side comparisons with other homes. They will also provide concerns about issues that might be harmful to the property’s value. Appraisers will also flag any serious flaws in the home, such as cracks in the foundation or holes in the walls, and a description of the general location and property market where the home is located.
4. Do I Need a Home Appraisal?
Home appraisals are required for any property transaction that involves a mortgage loan. Deciding the home value beforehand ensures that buyers can pay what they can afford and sellers can get the maximum profit. Lenders demand loans because they want to protect themselves and know how much they can sell the property for if the buyer cannot pay the loan back.
Wendy Gimpel Real Estate
Appraisals are an important part of purchasing or selling a home. If you’re interested in getting your house appraised, contact Wendy Gimpel, an experienced real estate professional who is dedicated to providing the best service in your home buying journey!