Most people think of appraisals as home inspections. However, home appraisals are defined as “a survey of the home by a professional for their opinion of the property market value.” A home appraisal is an important process for homebuyers because it establishes the properties market value, and lets a homebuyer know what similar homes are selling for, and what the cost of repair would be if the home was damaged or lost. Banks make this the final step to get the loan commitment. This is to ensure that the investment is covered in case you default the loan.
With many real estate markets still in a downward trend in value, appraisals are even more important to banks when making loans.
Important information to know about home appraisals includes:
- The property being appraised is called the subject property.
- Appraisals are not home inspections. They do not come in and test your appliances, look at your roof, check your foundation.
- The appraiser should be an objective third party, someone who has no financial or otherwise relationship with the persons involved.
- The buyer typically pays for the appraisal. This fee generally ranges anywhere from $300 to $500 dollars.
- IF the appraisal is too low the loan cannot proceed until the seller lowers the asking price or the buyer puts down more cash on their down payment.
For more information on all aspects of your home when buying or selling, visit www.123SellHouseNow.com .
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