Home appraisals are basically a necessity when you are about to buy a house, especially through a mortgage. It is even done when you are about to re-finance your mortgage or even you want to sell it to someone.
As it becomes really important to get a home appraisal you should be in a position where you have all the relevant information regarding home appraisals. Here we are about to make it easy simple for you, so you can read on to know the basics of getting a home appraised:
Now home appraisal is needed by bank before it can give you the loan amount you are asking for, but as the purchaser of the house, you will have to pay for it.
Home appraisal is basically the opinion of a third party about the value of the house. This third party gives an expert opinion whether the house you are buying is worth the price or not. As a buyer, you will get protection through a home appraisal as you will not be paying more that what is the actual value of the house. For banks, home appraisals give them a guarantee, that if you default on the loan amount, then they get the loan amount they had given you by selling the property. The banks will never give you money if they the appraisal value is less than the loan amount you had asked for. And if you are selling your house, then also you will be assured that you are getting the right price for your home.
Home appraisals should be carried out by a certified and state-licensed appraiser. The appraiser will come and check your property and will create a report based on his findings. The report includes:
1. An proper explanation on how the value of the property was determined.
2. The size and square footage of the house along with the condition of the house and other permanent fixtures on your property.
3. Details notes on structural problems such as, wet basements or cracked foundations.
4. Notes about the area surrounding the property.
5. A proper evaluation of the market trends.
6. A comparative analysis with similar properties.
7. Maps and photographs of the front, back and street view of the house.
Home appraisals cost a few hundreds and this cost is borne by the buyer of the house. But as it is necessary, so paying for it and having an understanding is only going to be good for you.
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