Property Appraisals and the Home-Buying Process

Homebuyers who follow a systematic approach to selecting a property can have a simpler and more enjoyable home buying experience. Studying property values in their desired area is an important first step.

Consider enlisting a qualified professional to do an appraisal of the property up front. This will give you a better idea of the condition of the house that you hope to buy and also more accurately estimate a fair asking price. Doing so can afford you the following benefits:

You get a clearer understanding of the home’s true worth.

Having a licensed professional examine a property before submitting a purchase offer can alert you to issues that need attention. Even if a house appears to be in good shape from the outside, its interior may be in desperate need of cosmetic or structural repairs. Appraisers will also evaluate the average price of nearby houses in the surrounding neighborhood and consider what improvements had been previously made to the residential property.

You have a better chance of submitting a competitive purchase offer.

Knowing the true value of a home can enable you to make an offer which can appeal to sellers without unnecessarily depleting your personal savings. As you may be competing with other potential homebuyers, it is important to stand out from the crowd and sweeten your proposal in order to improve your chances of receiving confirmation and moving forward with the sale. An appraisal can help you confidently submit an offer without paying too much or presenting too little.

You reduce your risk of closing delays.

Whether you choose an FHA, VA or conventional loan, your lender will request an appraisal. If the appraisal comes in lower than your loan amount, you will need to either renegotiate your offer price or apply for a larger mortgage. This can delay closing. Having an appraisal done up front can eliminate this guesswork and help your lender structure a loan to suit your needs.

Choosing a trusted source of financing can also simplify the home buying process. When making a mortgage rate comparison, it’s important to have the latest information. For details, visit whether you’re looking to buy a home or just refinance an existing loan.

This article has 1 Comment

  1. Thanks for sharing that an appraisal will be able to tell us how much the house really is. As you mentioned, they will evaluate the house as well as the nearby properties to ensure that it is reasonable. I guess I will hire one when we have finally decided to sell our house since we will be needing the money to support our son’s college fees.

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