If you’re on the market to buy a house, it’s essential to know about appraisals and what they entail. An appraisal is a process used by a lender to determine the worth of a property. It helps the lender decide if the property is worth the amount requested for the loan.
Here are some things you need to know about appraisals before buying your dream home.
Who Performs the Appraisal?
A certified appraiser performs an appraisal. A real estate agent or the buyer’s lender may recommend an appraiser to complete the house’s appraisal. An appraiser does not work for either party in a transaction but goes through training and certification before being trusted with making an official appraisal.
What is a Real Estate Appraisal?
Real estate appraisals are standard in most home sales and mortgages, as they provide an independent estimate of a property’s market value. Real estate appraisal documentation can also help protect buyers and sellers from risks that could lead to litigation. A real estate appraisal is a process by which the independent, third-party appraiser evaluates your house at the current market value.
If you are buying or selling a home, you may require an appraisal of real estate to represent and defend the purchase price and terms of the sale most accurately.
Real Estate Appraisal reports can also be used to determine the value of a home before purchasing or selling Real Estate, as well as for estate planning, divorce proceedings, tax assessment appeals, and more.
Process of Appraisal
Appraisers will inspect the outside of the home, including the structure and foundation. The appraiser will also comb through public records for information about the property’s history, previous sales in the area, or other things that may affect value.
The process of real estate appraisal is governed by state law and regulation, which explicitly requires an appraisal if any party requests one. Furthermore, For example, if you negotiate a contract with a buyer without first obtaining financing, the buyer may request an appraisal if they want to check your property’s value.
Likewise, if you secure a loan before offering to buy, the lender may order an appraisal to protect its investment once you sign a contract. In some states, it is even possible for a buyer to request three appraisals if they do not believe the first one meets their minimum requirements.
