In real estate, one of the most common activities that takes place is a home appraisal. With a home appraisal, both buyers and sellers of real estate will be able to have a better idea of the overall value of a home. With home appraisals, both parties will be in a position to determine if they want to complete a real estate transaction with a full knowledge of what the home is worth. Whether you are a buyer or a seller, there are a number of things that you will need to know about home appraisals. This will help you get a better understanding of what this entails and help you use an appraisal to your advantage.
WHAT IS A HOME APPRAISAL
A home appraisal is an unbiased professional opinion of the home’s value. It is an evaluation of the entire home in which a professional goes over the home and comes up with a specific value based on things such as the condition of the home as well as its characteristics such as the amount of square footage. With a home appraisal, homeowners, buyers, and real estate agents will be able to get a legitimate assessment of how much a home can be sold and/or bought for.
WHAT BUYERS NEED TO KNOW
When it comes to a home appraisal, there are things that a buyer will need to know. One of the main things that they will need to know is that an appraisal is something that can indicate how much they will need to pay for a home. It will allow them to make a valid comparison between the asking price and the actual value of the home. With this knowledge, a buyer will be in a better position to negotiate the purchase price and determine if they want to buy a home.
WHAT SELLERS NEED TO KNOW
For sellers, a home appraisal is also very valuable to them. They will be able to know how much they can realistically get for the home in a sale. Sellers will also be able to determine if they can sell a home for what they want. With this knowledge, they will have the ability to decide if they want to sell the home now or sell it at a future date.
WHY ARE HOME APPRAISALS IMPORTANT
Home appraisals are important because they provide an accurate assessment of the true value of a home. No lender will give out a loan for a home when they don’t know it’s true value. As well as benefiting the lender, it will also benefit the buyer and the seller. Both of these parties will need to know the value of a home so that they can successfully complete a real estate transaction. It is also important because it can help realtors provide legitimate feedback to both buyers and sellers in terms of determining the final price of the home.
WHO PAYS FOR THE HOME APPRAISAL
When a home appraisal is done, the seller pays for it in most cases. They will usually pay for the home appraisal at the closing. When it comes to a home appraisal cost, the price will vary. Some appraisals can be as high as several hundred dollars. However the average cost of a home appraisal is about $309. As a result, the cost is quite minimal compared to other closing costs associated with the sale of a home.
THEY ALL HAVE DIFFERENT PURPOSES
Home appraisals have a number of different purposes. The most common purpose is to determine the value of a home at a certain point in time. Another reason to get a home appraisal is to refinance a home. When looking to get a home appraised, either a buyer or a seller will want to use it as a key negotiating tool. They are also used for a market analysis for realtors and also used in order to get a homeowners insurance quote.
CONCLUSION
When looking to complete a real estate transaction, one of the things that is usually done is a home appraisal. A home appraisal is done to serve a variety of purposes that include making sure that a home is valued properly. With a home appraisal, buyers, sellers, realtors and lenders will have the information they need in order to successfully complete a real estate transaction at its actual market value.
