Iām a Buyer, What Do I Need to Know About An Appraisal?
As the home buyer, you will probably be requesting an appraisal. If you are getting a loan to buy your house, an appraisal will be part of the process. This is a professional appraiser’s estimated value. The appraiser will use recent properties that have sold in the area to help determine the value of the home you choose.
The appraiser will also consider the condition of your home, age, size and so forth in determining the value. If the house is appraised low, your agent may suggest you make a lower offer with the attached appraisal to qualify for your loan. In some cases, the seller may still hold to their original asking price and ask you to pay the difference in cash.
It is not likely to receive a loan amount for higher than the appraised value of the home for purchase. Most residential purchase agreements are based on the appraisal and are negotiated at that time if there is a need to do so. For many, this can be a nerve-wracking moment in the process. The home appraisalĀ process includes the following:
- A complete walk-through of the house to get an idea of the overall condition and room count
- Documentation of the entire condition of the property, both inside and out.
- The Quality of construction and modernization of the home
- An evaluation of the value of the house
- Information on the house, including square footage, and the condition of the garage, carport, or other peripheral properties
- Estimates of the ācontributory value,ā which is any additions or repairs you have done to the home prior to listing
- Other attributes of the home which wouldĀ add to the market value of it
HOME APPRAISER CREDENTIALSĀ The typical home appraiser has a state license or certification in home appraisal processes from an accredited school or real estate training. This means that they are highly qualified to make an assessmentĀ of the final market value of the house. This figure is highly influential to the buyer in communicating how much the home is worth and in determining how much they are willing to pay.
ONE CAVEATĀ It is important to note here that an appraiser is NOT an inspector. Ā For this reason, he or she cannot do structural assessments, termite checks, under the floor evaluations, or any of the other things the home inspection team can do. This is why it is important to have both a Pre-home inspection and a Pre-home appraisal completed prior to listing your house for sale.
Buying a home in Central Ohio?
When buying a home in the Columbus area, it’s important to work with an experienced, dedicated, full-time RealtorĀ®. Learn more about Realtor Rita Boswell, and call or text her directly at 614-830-9767 to schedule showings of homes for sale.
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