Getting an appraisal is one of the best decisions you can make before either buying or selling a property. While it is not mandatory, the small price that you end up paying for this appraisal can end up saving you thousands of dollars in the long run. In most cases purchasing a home will be the largest investment of your life and beginning with a sure and confident foot forward is always the best way to get started.
Home Appraisals Offer Peace of Mind
When you're purchasing a new home you'll have the added peace of mind that only an appraisal can provide. You'll know how much the home is worth and whether the seller is asking a reasonable and fair price for it. The appraisal also gives your real estate agent a tool that you can use during the negotiation process and helps you work alongside your agent as a team member that's better informed.
If you're planning on selling your property an appraisal will help you and your real estate agent establish a fair asking price. It can also help to secure a close faster since it can be provided to prospective buyers. In many cases an appraisal can stop lowball offers from being presented, which is always a positive thing!
How Home Appraisals Help Buyers and Sellers Individually
Appraisals can be an excellent tool for both parties during the home-buying process. For home sellers, the appraisal can help them set a listing price for their house. This can be an especially useful exercise for home sellers who have reason to feel unsure about their home's value.
Most real estate agents gauge the value of a home based on comparable homes in the area. For a home that has unusual features like a geothermal HVAC system, or solar shingles on their roof, determining the value (and list price) of the home very difficult. Working with an appraiser enables the home seller to decide for how much they can sell their home.
If the home appraises for a low amount, the home buyer may choose to make changes to improve the home's value. Without the appraisal, the seller may not know that these changes are worthwhile.
For buyers, the appraisal helps ensure that the buyer is paying a fair amount for a home. This is especially important if the buyer is taking out a loan, as this prevents the buyer from borrowing more than the home is worth.
Performing the appraisal before the buyer makes the offer is especially important. This can make it possible for the buyer to avoid offering too much for the house, which could lead to problems during the home purchasing process.
When It Comes To Home Insurance
When you're getting an appraisal done, ask for a provision that includes the replacement cost of the home. This can be provided to your home insurance company as a type of protection to make sure that you aren't paying too much for your insurance policy.
When Shopping For A Loan
When you have a certified appraisal it belongs to you. You'll be able to search out various mortgage lenders and present them with this certificate for a faster and easier mortgage approval.
It can be quite expensive selling or buying a home, that's for sure, but the cost of a home appraisal is one of the least costly investments there is when compared to other expenditures. Your real estate agent can help you out by providing a desktop type of appraisal or an inexpensive fast home drive-by appraisal that can at least get you started with a general estimate of your home's value before a formal appraisal is carried out.