Home appraisal services are crucial for a variety of reasons. Lenders need them to underwrite a loan and protect themselves against potential losses. For example, they need an appraisal to know whether a property is worth the price it was purchased for. Likewise, it can protect a lender from foreclosure, wherein the home is sold and the lender gets all of his or her money back. Here’s a look at the different uses of home appraisal services.
The purpose of a home appraisal is to determine the value of a house, but a well-maintained home is more likely to fetch more. A professional home appraisal will also look for signs of pests. If you see signs of mice or other insects, fix them before an appraiser visits. Additionally, you should clean any cracks in windows, chips in the paint, and other defects. The last thing you want is to have an appraiser rely on your own judgment and deem your home too shoddy.
Appraisers also look for additional features and amenities. A swimming pool is a great feature in colder climates, while air conditioning is great for the summer. A fireplace is a nice feature, too, as is a garage. Adding security and convenience to a home will also boost its value. If it has an alarm system, the owner will have peace of mind when it comes to selling their home. If a home appraisal is too expensive, it might not be worth the investment.
The value of a home is determined through comparisons with recently sold properties. The appraiser also looks for amenities such as the number of bedrooms, bathrooms, floor plans, square footage, and more. In addition to these factors, an appraiser performs a comprehensive visual inspection of the home to note any conditions that may reduce the value. While you cannot change the location of a home, you can make improvements that make it look more attractive to potential buyers.
If your home appraises to be lower than the purchase price, it may be time to renegotiate the transaction with the seller. In a sellers’ market, this can be difficult to do, so you may have to increase your down payment or renegotiate the contract. If you think the appraiser erred, you can try appealing the decision and have a higher price agreed upon. However, you should know the market conditions and keep an eye on comparable sales. You may also want to hire a real estate agent who understands the local housing market.
Once you have signed up for home appraisal services, the appraiser will visit your property. He or she will examine the property from a number of angles, including the exterior and garage. After the inspection, the appraiser will then compile a report that outlines his or her opinion of the value. The appraiser will then share this with the prospective buyer, and it usually takes one to ten days to complete. If you would like to receive the report, you may request it.