Homebuyer
Tips
From Catherine Mitchell, The Intentional Realtor®™,
Appraisals
give an objective view of the home’s value in the marketplace
Having an appraisal is an important part of the home buying
process. It brings tremendous leverage
when it comes to price negotiations. A
real estate appraisal establishes a property’s market value which is the likely
sales price it would bring if offered in competitive real estate market.
Appraisals
Appraisals are detailed reports based on an appraiser’s on site
evaluation of a property as well an evaluation of sales data. Appraisals include details about the property
along with side by side comparisons of similar properties. It also includes an evaluation of the real
estate market in the area, statements about issues the appraiser feels are
harmful to the property’s value, notes about flawed characteristics pertaining
to the property, an estimate of the average sales time for the property, and
the type of area in which the home is located.
Two types of appraisals
A Sales Comparison Approach
and a Cost Approach are two common
appraisal methods. A Sales Comparison Approach is an estimate
of the property’s market value by comparing it to similar properties that have recently
been sold in the area. The Cost Approach is most useful for new
properties where the cost to build the property is known. With the Cost
Approach the appraiser estimates how much it would cost to replace the
property if it were destroyed.
The lender
A homebuyer’s initial mortgage approval is accomplished early on, but
final approval of the loan depends on a satisfactory appraisal. An appraisal is the only evaluation report a
lender considers when deciding whether to lend money. Lenders study appraisals very carefully
before determining whether a property qualifies as a security for a loan. An appraisal provides the lender with
assurance that the property will sell for at least the amount of money that it
is lending. If the property’s
appraisals is lower than the sales price the loan may not be approved. The lender wants to be sure that its
investment is covered in case the buyer should happen to default on the loan. In some cases the buyer pays for the
appraisal fee at the time of the loan in other cases the fee is added to the
settlement and paid at the closing.
Connect with Catherine:
As the The Intentional Realtor®™,
my goal is to help you achieve the reality of homeownership. I’ll do my best to make sure that you receive
the best representation possible when it comes to buying a home and that you
receive an appraisal well worth the fair market value, which is why securing a
good Realtor® is in your best interest to help you find the home of your
dreams.
For
this and more real estate needs by the The Intentional Realtor®™,
connect with me, Catherine Mitchell, at (704)
898-0605 http://www.catherinemitchellrealty.com/
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