The biggest worry for any home buyer is whether they are paying too much for the property they are about to buy. If you are taking out a mortgage to pay for a home, selling your home to someone, or refinancing an already existing mortgage, home appraisals are a key component of the transaction.
By definition, a home appraisal is an unbiased professional opinion of the value of the home. An appraisal is always used in purchase-and-sale transactions to determine if the contract price is appropriate.
Therefore, it is important that the seller and the buyer both understand home appraisal, how it works, and how it helps determine the value of the home.
- Appraisers are licensed professionals
- Appraisers will compare your house to others like it
- Appraisals benefit the buyer
- Appraisals are not a substitute for a home inspection
- Sellers can also hire appraisers
Appraisers are certified and licensed professionals. Generally, it is their job to look at the price of the contract and compare it to the homes location, condition, and features. They go through a standard evaluation process and complete an appraisal form. Appraisers will look at every square foot of the home and consider all its aspects, including the number of repairs needed.
To determine the price of your home, appraisers need to look at multiple homes. They will check out the recently sold homes and in the same area and evaluate them against your own property. This allows them to see if your home is appropriately valued.
Appraisals benefit the buyer more than they do the seller. It gives the buyer bargaining power. If the appraisal is low, it can become a negotiating tool to help convince the buyer to reduce their prices. It is also a tool that is used in the mortgage process. Banks will not give you more than the value of the home.
The appraiser will only give you information on the general condition of the home. They will only tell you whether or not your home needs serious repairs. It is the job of the home inspector to specify the areas that need work and let you know about appliances that are broken. Just because the appraiser says that the condition of the home is good does not mean you can skip the inspection.
If you are looking to sell your house, it is crucial that you hire an appraiser before you make the listing. This lets you know which areas need to be repaired in order to increase the value of the home.
The real estate agent you hire should help you estimate and set the selling price of your home. If different agents are quoting different prices, look for an appraiser who will give you a more specific figure. Lenders, however, are not required to take your appraises word for it. They will often conduct their own appraisal, and that is fine.
Soldavi Realty is committed to having their clients understand the real estate process because the business was built upon founder Armando Diazs success with helping local families become first time homeowners. Diaz was named one of one of the National Association of Realtors 30 under 30 rising stars in 2010.
If you’re buying a home for the first time, call Soldavi Realty at 209.975.7653 or send us an email at info(at)soldavi(dotted)com to see the newest homes for sale in Chowchilla, CA