Today, we will be talking about the home appraisal process. Most home-buyers get a mortgage loan on the properties that they purchase. Unless you are paying for your home in cash, you need to read this post! You will learn why you need an appraisal, who pays for it, and who protects it.
why do i need a home appraisal?
An appraisal is meant to protect the lender. During the loan process, the lender will order an appraisal of the property that the borrower is responsible for paying. This appraisal will assess the fair market value of the property. Outside of the home purchasing process, there are other uses for a home appraisal. This can include home insurance needs or if you are buying an investment property. The appraisal will need to get a rent schedule to know how much the property can rent for.
What is a home appraisal?
A home appraisal is not concrete. Simply put, an appraisal is one person’s opinion on the value of a property. This can vary depending on who does the appraisal and the time that it is done. Any changes in the market condition can affect the appraised value. The appraised value does not represent the whole picture of home prices. There are special circumstances that need to be considered. For example, if the seller needs to move quickly and sell the property.
WHere does the data come from?
Where does the data come from to get the appraised value of the property? The appraiser goes back to comparable data (up to six months) in a one-mile radius of the property. They will look for properties as similar to the subject property as possible. If there are variances the appraiser will make necessary adjustments to calculate market value.
When should i get a home appraisal?
When does the home appraisal happen? Generally, it will be after you have done your home inspection and you are sure that you will be moving forward with this property. Once your initial loan disclosures are signed, you will then pay for the appraisal.
WHo should be the appraisal?
Who is present at the home appraisal? Usually, the listing agent is there with data for the appraiser. This will help ensure that what you paid for the property is what it is actually worth.