What Are Appraisals And How Do They Work
Posted on April 15th, 2014 by Underwood Mortgage Group
Appraisals are when an expert evaluates your home and property, estimating how much its value is. These experts are professionals that are licensed by the state, which requires courses and an internship to obtain. Appraisals are often required by your mortgage lender for the home that you want to buy before they will lend you the money to buy it. By doing this, evidence is gathered to ensure the property could sell for the sum of money being lent to you. If the appraisal value comes out to be significantly less than the asking price of the home, you are likely to not be approved for your mortgage. The same process is normal for refinancing your home as well. It would also be wise to appraise your home when looking to sell – this will help you determine a selling price.
On average appraisals cost around $400, depending on the size and value of the home. There are also various types of appraisals that can affect the price. There are walk-through’s and drive-by’s. When appraising a home the appraiser looks at the size, type, and condition of the home and property, along with the area’s real estate market to determine the home’s value. Anything considered to be a flaw will be taken note of and the price and time for repair is calculated. All of this information helps determine the fair market value.
It’s important to understand that condition of a home affects the appraised value. You can increase the value by keeping up with repairs and improvements in your home. It is not what is just within the home, but the property itself as well. If your first appraisal isn’t a price you believe to be correct, a second opinion is always recommended.
If you’re looking to buy or sell your home, the No. 1 selling team of Rick Underwoood is the team for you. We will be there to help you through the entire process and ensure that you are getting your money’s worth. Contact us today at 714.203.8555.
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