Someone selling a house may have told you that an appraisal was required. You may need to pay for the appraisal, which can be very expensive.
Maybe you don’t need an appraisal. Is it really necessary to get an appraisal before you buy a house. The lender usually orders it. Your closing costs will include the appraisal.
What are appraisals? And why are they important for us?
What does it mean for an appraiser to be?
The job of an appraiser is to make sure that the buyer doesn’t buy a house that is too expensive.
It helps protect the bank from lending money to buyers who could stop making their mortgage payment.
If a buyer is unable to pay the monthly mortgage payment but takes out money from a bank, the bank can take over the house (collateral), and resell it. If the amount borrowed exceeds the property’s value, the lender or bank will not be able recover their losses.
What’s the best way to get an appraiser to value a home?
The comparable sales in your area will determine your home’s worth. The term “comparable”, which appraisers use, means that they compare your property’s characteristics with nearby home sales.
These include, but not limited to, square footage and bedroom/bathroom counts as well as lot size.
Appraisals can be challenging
You will find many types of homes within a neighborhood. Even if they are, it is possible that there is a low turnover rate in some neighborhoods. This means that there is not enough housing being sold in order to determine a market price.
Why is it important that you work with a professional agent when selling real estate?
Appraisals can cost as little as $450 up to $600. This cost is required regardless of whether the property is sold. It turns out the price is 50k higher that what it actually costs.
This combined with a $200 to 250 home inspection will make it clear why an agent conducting a CMA prior to you writing up your offer could prove so valuable.