What is a Home Appraisal and How Does it Affect a Home Purchase?
Do You REALLY Need a Home Appraisal? Let’s Talk About It.
Often when hunting for your dream home, you may feel pressured to sign right away once you find the home of our dreams. Or maybe when you finally commit to listing your current home you may think that’s the first step.
We have insight for both home buyers and sellers that may save them thousands:
Don’t skip the home appraisal!
What is a home appraisal?
This is an unbiased report of the home’s value. Appraisers use several factors when estimating a home’s value including: home’s size and square footage, home and neighborhood condition, recent sales in the area, any relevant historical background, and the possible future value forecast.
According to the Appraisal Institute, an association of professional real estate appraisers, the appraiser conducting the report on the home should be licensed or certified, as it is nationally required, and they should also be familiar with the local area.
Here’s what buyers need to know:
Once you find your dream home and are under contract, that’s when the home appraisal comes in.
If the appraisal comes in below asking, it may delay closing but also may be a point of leverage to lower costs to close. Though an appraisal may come in lower, the seller does not have to lower the price if they disagree with the appraisal. Getting a second opinion in these cases may be the most useful to keep the process moving forward.
Here’s what sellers need to know:
Getting appraised before listing may help avoid delayed closing or surprise appraisals that pull costs into question. You can find a local, certified appraiser before listing in order to keep your home selling process seamless.
Appraisals typically cost between $300 – $450 and vary based on the size, condition, and location of your home.
Need more insight? Reach out to one of our expert realtor’s today!