Home Appraisals : Why They Are Important
The Home Appraisal is a crucial element of the real estate process when trying to buy a house or sell a house. In this post, we will cover the fundamentals of home appraisal or also called real estate appraisals.
There are several factors to consider whether you’re buying or selling a house. The valuation of the house is a crucial factor in this process since it affects how much the seller receives, how much the buyer pays, and how much the lender will finance. That is the purpose of appraisals.
An appraisal evaluates the home’s value. The outcome of an appraisal can have a big impact on the true value of a house. Buyers want to know if they are overpaying for the home, lenders want to know if they are loaning too much money for the home, and sellers want to know if they are underselling the property. The deal continues as usual if all goes according to plan. But before the sale can proceed, you might need to iron out issues if the home’s valuation is different than anticipated.
Examinations conducted by appraisers are in-depth. To support their examination of the house and determine its value, they must use information from public documents, and visual proof. Some factors that influence an appraisal’s outcome include:
- recent sales of similar homes
- recent sales of surrounding homes
- Economic Trends
- Floor Plan
- Quantity of bathrooms and bedrooms
- Square Footage
- The condition of the interior and exterior
In the course of a negotiation, appraisals are essential. You can always bring this to your appraiser’s attention or try again with a new appraiser if you don’t think the appraisal’s results are accurate. However, if both parties are pleased with the outcome, it may lead to peace of mind when closing the transaction.
We always recommend that you hire yourself a real estate agent to help you navigate through the whole process. It is one more thing you don’t have to think about.