Appraisal Tips for Buyers
Appraisal Tips for Buyers
Before a purchase of a home it is a very wise move for the potential buyer to obtain a professional property appraisal. An appraiser will evaluate the home and organize what they find into a detailed report which will also state the value of the property. This valuation should be the fair market value of the home when it is placed for sale on the real estate market. Based on the findings of the property appraiser lenders can determine how much they are going to allow for the mortgage. It is very important to obtain a reasonable property appraisal. The price should be neither too high nor too low for the property.
Advantages of Having a Professional Property Appraisal
Obtaining a property appraisal can offer a level of protection for a potential buyer. A reputable appraiser can ensure the buyer that they are not being overcharged for a piece of property. There are some lenders who engage in illegal activities and hire their own appraisers which will overestimate the value of a property so that they can get a higher selling price. The buyer should always hire an independent appraiser if possible. This will ensure the buyer that they are not paying more than the fair market value of the property. Hiring their own property appraiser can give the potential buyer peace of mind and ensure that they are paying a fair price. Once the appraisal is in hand, the buyer can use it as a negotiation tool in dealing with the lender to try to obtain a lower price for the loan. Getting their own property appraisal can end up saving the buyer potentially thousands of dollars off the price of the house as well as in interest.
How to Handle the Appraisal
If there are multiple appraisals completed on the property, or the buyer does not hire an independent property appraiser, the buyer can request their own copies of the appraisal report from the lender. It is very important to carefully look over the report and ask about anything that is not clearly understood. If there is reason to doubt the accuracy of the appraisal, it can be appealed. It is also fair to ask for a second appraisal if there are any doubts about the first one. The purchaser may be required to pay for the additional appraisal. It is very important that appraisals are completed by certified professionals such as Abbe Edelman.
Is an Appraisal an Inspection?
A property appraisal and an inspection are not the same. They are two very different things as well as serve two distinct purposes. An inspection is looking mostly at the condition the home is in. They will check out the primary condition of things such as the quality of plumbing, doors and windows, air conditioning and heating units, exterior and interior painting and all the detailed aspects of the home. An appraisal will be looking at the property in general and while they may find some potential problem areas such as a wet basement or a cracked foundation they will not be inspecting the condition of the home. However, a property appraiser will consider the overall condition of the home. They will then set an amount that represents what the home would go for when placed on the real estate market. This value takes into consideration other homes that are comparable. Other factors like the type of neighborhood and what other properties are selling for in the area are taken into consideration when determining the value of a property. A buyer can usually only borrow as much as the property is appraised for when seeking funding.
Advantages of Having a Professional Property Appraisal
Obtaining a property appraisal can offer a level of protection for a potential buyer. A reputable appraiser can ensure the buyer that they are not being overcharged for a piece of property. There are some lenders who engage in illegal activities and hire their own appraisers which will overestimate the value of a property so that they can get a higher selling price. The buyer should always hire an independent appraiser if possible. This will ensure the buyer that they are not paying more than the fair market value of the property. Hiring their own property appraiser can give the potential buyer peace of mind and ensure that they are paying a fair price. Once the appraisal is in hand, the buyer can use it as a negotiation tool in dealing with the lender to try to obtain a lower price for the loan. Getting their own property appraisal can end up saving the buyer potentially thousands of dollars off the price of the house as well as in interest.
How to Handle the Appraisal
If there are multiple appraisals completed on the property, or the buyer does not hire an independent property appraiser, the buyer can request their own copies of the appraisal report from the lender. It is very important to carefully look over the report and ask about anything that is not clearly understood. If there is reason to doubt the accuracy of the appraisal, it can be appealed. It is also fair to ask for a second appraisal if there are any doubts about the first one. The purchaser may be required to pay for the additional appraisal. It is very important that appraisals are completed by certified professionals such as Abbe Edelman.
Is an Appraisal an Inspection?
A property appraisal and an inspection are not the same. They are two very different things as well as serve two distinct purposes. An inspection is looking mostly at the condition the home is in. They will check out the primary condition of things such as the quality of plumbing, doors and windows, air conditioning and heating units, exterior and interior painting and all the detailed aspects of the home. An appraisal will be looking at the property in general and while they may find some potential problem areas such as a wet basement or a cracked foundation they will not be inspecting the condition of the home. However, a property appraiser will consider the overall condition of the home. They will then set an amount that represents what the home would go for when placed on the real estate market. This value takes into consideration other homes that are comparable. Other factors like the type of neighborhood and what other properties are selling for in the area are taken into consideration when determining the value of a property. A buyer can usually only borrow as much as the property is appraised for when seeking funding.