Appraisals 101
Understanding the Basic Principles of Home Appraisals
When it comes to buying or selling a home, the appraisal process is an important part of ensuring that the property is properly valued. An appraiser will use their expertise and knowledge of local real estate markets to provide an accurate assessment of a home’s worth so buyers and sellers can be confident in their purchase or sale. In this blog post, we will explore the basics of appraisals and how they affect home sales.
When buyers are interested in purchasing a home, they will typically order an appraisal from a qualified professional. The buyer pays for the appraisal report and an appraisal company will pick up the order. An appraiser will visit the property to assess its condition and features. They will then compare it to similar properties that have recently sold in the area in order to determine its fair market value. This helps protect both parties involved- the buyer by ensuring they don’t overpay for their new home, and the seller by making sure they receive a fair price for their house. Appraisals can also be conducted during refinancing or home equity loans in order to verify the current value of a property and make sure borrowers aren’t taking out more money than what their home is worth.
Appraisals can also come in handy for sellers who are looking to list their home. Listing a property at the right market value is key to getting it sold quickly and at the best possible price. An appraisal provides an accurate overview of what a home is worth so that sellers can make informed decisions when setting their listing price.
From my experience if a property appraises for less than the agreed purchase price and you're still within your financing contingency period it usually can go one of three ways.
The buyer comes up with the difference since the back will not fill the gap.
The seller agrees to lower the price.
Both parties walk away from the transaction.
These options are all subject to the exact terms of your purchase agreement so it is important to read it and seek legal advice for any clarification.
As an experienced realtor, I understand how important appraisals are when it comes to selling or buying a home. My team and I have extensive experience working with appraisers and helping our clients get the most out of their real estate transactions. If you’re looking for assistance with your next real estate sale or purchase, contact us today! We would be more than happy to help you navigate the process with ease.
With any luck, this content will help answer questions about the basics of appraisals and how they affect home sales. Thanks for reading!
Sincerely,
Hansel Duran
SL3358519
954-231-4916
@hanseljduran
www.hanselduran.com
