An appraisal provides an unbiased opinion of the market value at a specific point in time, meaning what is the most probable price a willing buyer would pay for a specific property. Appraisal values are based on an analysis of the property’s condition and takes in to account similar home sales. The appraisal is ordered by the buyer’s lender and is one of the first steps toward closing the sale of the home. Robb Realty Group can help you with your home search with our VIP Buyers Program.
The appraiser bases the estimated value of the home on in-depth research and comparison to other similar properties considering amenities, features, condition, etc.
What is the cost of an Appraisal?
The appraisal is ordered by the lender and the buyer pays for it. It is usually a few hundred dollars. The appraiser should be licensed, certified and qualified as well as familiar with the surrounding area. Regulated by law, Appraisers are required to be impartial, unbiased and compliant with Fair Housing Laws.
What do home appraisers look for?
Your appraiser’s report will include a detailed description of several factors about the property from interior and exterior condition to improvements and renovations as well as beds, baths and square footage to name a few.
After a thorough review the Appraiser will determine the value of the home and whether the listed price for the home is appropriate. If the appraised value comes back less than the listed price there are several options on how to move forward with the transaction or cancel depending on how the purchase contract is written. Often-times the sale can be renegotiated or in the current seller’s market its not unusual for the buyer to make up the difference with money out of pocket from the appraised value to the sale price.
In conclusion
An essential part of the mortgage process, the appraisal ensures the amount being paid by the borrower and lender is true to the value of the home.
Robb Realty Group partners with you when you're buying a home to provide valuable resources including Mortgage Lenders for you to interview and choose as your lender.