Home Appraisal: What is it?
In general, APPRAISAL is a fair and impartial assessment of anything that can be valued by an expert. The most common appraisal for most of us is an appraisal of our real property. Whether you’re buying or selling your property, having it appraised by a Licensed or Certified Appraiser is often required.
Real property is a concept that not only includes real estate but also a bundle of rights related to the real estate. In other words, real estate is a term that defines a set of physical things, while real property is a concept that includes those things plus the legal rights attached to it.
Whatever type of home selling or buying transaction it is Home Appraisal is simply the key for a successful deal. The real value of a property depends on the size, condition, features, and location of the said estate.
Lenders mostly require appraisal for assurance and for them to know how much is the real value of a property. Appraisal is like their protection and collateral for the said financing or refinancing loan. The lender usually orders an appraisal and once they do, the borrower will shoulder the appraisal fee which is roughly several hundred dollars. And lenders always opt in to “Licensed Certified Appraisers” for this role. This is to assure them of credibility and accuracy of the Appraisal Report.
Licensed Appraisers consider a lot of factors to finish a specific and legit Appraisal Report. It can be Exterior or an Interior inspection, depending on what is required. They also consider the neighborhood and the similar properties sold in the area.
Home buyers and sellers need to know that Home Appraisal is the primary step to close the contract if a home is under it. If the appraisal comes over the top of the contract price, the deal is good to go. But still depends on the negotiation between the buyer and the seller. Of course, the lender will not lend anything above the property’s value. Home sellers also need to bear in mind that if the appraisal is lower than expected they need to lower down their selling price.
To sum it all up, Appraisal can either be with the seller’s or buyer’s favor. If if goes as expected the deal will go on smoothly and if not it can cause a delay or cancellation of the transaction. Understanding and trusting the process can only be on your side depending on the situation.
So don’t be confused and keep all your appraisal questions with you. We can definitely help you with all your appraisal needs. Get a FREE QUOTE/CONSULTATION now!