A residential appraisal is an essential part of all real estate transaction that involves mortgage loans. A house appraisal is important when refinancing oneself, or selling properties to people who don’t have cash and want to get mortgage loans.
You may have known what a house appraisal is before. A home appraisal is an opinion on value by a professional, qualified and unbiased third party. You should get a home appraisal before paying for a home that you want to buy to ensure that you haven’t been overcharged. All mortgage lenders will always need a residential appraisal to gauge the amount of mortgage loan they should give out. This is to ensure that the homeowner hasn’t been overcharged by the seller. This is because, if the borrower stops paying the mortgage, the lender will take action and remove the homeowner from the home and sell it to other buyers. Therefore, the home should be more worth than the money loaned. Generally, a house appraisal is an advocate of protection for the mortgage lender.
When determining appraisal values, there are many factors to have in mind. The current market trends, the status of the property, landscaping, number of rooms, bathrooms, exterior condition and parking are some of the factors that affect appraisal values. These appraisers will ensure that the property is well inspected and a good report containing details of the property is submitted to the lender. Appraisers have standard report forms that they use to fill everything the reports requires, and they do it in accordance with the appraisal law.
These are often the content of an appraisal report; a street map, square footage, building sketch, comparable sales, photos of the front, back and street scene of the house, photographs of each of the comparable property used; a map of the comparable properties, plot map, users of the appraisal, photo an descriptions of the rooms. Homeowners are responsible for paying the appraisal fees and they have a range.
Homeowners should have in mind some things about residential appraisal. Often, appraisal can put down the deal when buying a home. Appraisals are normally done towards the end of the buying process. If a home appraises for a lower fee than the offer to purchase, the lender will not provide the loan. If you are a buyer, you can take the advantage and negotiate for lower purchase prices. Do not give in to a bad appraisal that may destroy the deal, but seek a second appraisal.
For sellers, low appraisal will indicate that they have to reduce the house’s price to encourage the selling. You will have to lower your prices to the level the mortgage lender will agree and give the loan.