TIPS FROM YOUR REALTOR | UNDERSTANDING THE HOME APPRAISALS PROCESS
After month and months of searching for the right home, you’ve finally found it. You work with your realtor and send over a great offer, and, lo and behold, it was accepted. Unfortunately, you’re not quite finished.
For those that have applied for a mortgage, the home you have fallen in love with will now need to undergo what is called an appraisal.
WHAT IS A HOME APPRAISAL?
A home appraisal is an inspection of a piece of real estate to find its true value. A home appraisal is completed by an appraiser that looks for qualities such as location, amenities, structural condition, and recent sales of real estate in the area.
They will also consider the condition of the home, the square footage, location, and other elements of the home to ensure an accurate estimate of the property in question.
This information is sent to your lender, as it is their investment as much as it is yours. This will help them determine what the house is actually worth against what you are willing to pay.
CAN MY REALTOR HELP WITH HOME APPRAISALS?
They should be able to help you find a home appraiser quickly, that specializes in the market that your property falls into.
This will not only expedite the process, but also help you get the best, most accurate estimate of the property you love.
WHO DOES THE HOME APPRAISER WORK FOR?
Although you are paying for the home appraiser’s services, that does not mean they necessarily work for you.
Your home appraiser works for your lender, not you. This ensures that the home appraiser remains as ethical as possible when determining the value of your home.
All home appraisers function as an independent player in the overall real estate game. If not, this compromises the integrity of their services and can result in crime.
WHAT IS THE PURPOSE OF A HOME APPRAISAL?
The overall purpose of a home appraisal is to keep you and your lender from making a bad deal. In the case that the appraisal comes in lower than what you are asking for, this can cause some friction and keep you from getting into the home you love.
In this circumstance, a lender might be less willing to lend you the funds you need to purchase the home, which can cause difficulty in your buying process. As a result, you might have to pony up the funds out of pocket, or ask the seller to cover the difference.
This is something that your realtor can absolutely help you with, but should ultimately be avoided. They will have the knowledge of the market and the connections to ensure you are getting your home for the best value.
WHAT HAPPENS AFTER THE APPRAISAL IS COMPLETED?
Once the appraisal process is completed and you’ve decided how you would like to move forward, you can begin to close your deal.
A home inspection will be needed to ensure the complete integrity of the property is considered.
This can be a nerve-wracking process, but can help save you from buying a home that prices well over its actual value.