Appraisal Importance When Buying a Home
If you need a mortgage in order to buy your home (you are in good company, by the way) you need an appraisal. This unbiased determination of the potential home’s fair market value can
make or break the transaction. That is why a professionally trained and licensed Appraiser is crucial to both the buyer and seller.
First, the appraiser will make a site visit to inspect a variety of things, including interior and exterior condition, home improvements, renovations and lot size.
Second, the appraiser will find similar homes for sale in the area, known as comparables, to get a good idea of the fair market value in the area.
A time frame of three to six months is typical when considering whether a home is a good comparable, which is then used to adjust your home’s value.
As stressful as the appraisal process may seem, it is key to protecting your investment. You never want to pay more than the home is actually worth, and because you are using a lending
institution’s money, they just will not let you. It is a sweet moment when that appraisal says the home value and purchase price are a match. A match made in home-buying heaven.