House appraisals are critical components of any real estate transaction that is connected with a mortgage loan. When refinancing or selling a home to someone who will need to acquire a mortgage, there is need for an appraisal.
Many people will want to ask what a home appraisal is. Residential appraisals refer to the view on the value by a third party who is qualified and unbiased. You should get a home appraisal before paying for a home that you want to buy to ensure that you haven’t been overcharged. A mortgage lender will require an appraisal before giving a mortgage loan. This is to ensure that the homeowner hasn’t been overcharged by the seller. Correct valuing of the home will help in that failure to complete payment by the borrower will lead to legal action against the homeowner and selling it to other real estate buyers. It should be ensured that the worth of the house should be higher than the amount obtained from mortgage lenders. Generally, a house appraisal is an advocate of protection for the mortgage lender.
There is a necessity to look into various things when determining appraisal value. House appraisals will always consider the following; current market trends which are shown in the comparable properties the appraisal chooses, the house features, square footage, the house condition, landscaping and the exterior condition and parking garage. The appraiser will perform a thorough inspection of the interior to the exterior for all the factors and note any maintenance issue in the report to the lender. Appraisers have standard report forms that they use to fill everything the reports requires, and they do it in accordance with the appraisal law.
Standard reports will have; comparable sales, a street map, square footage, photos of the front, back and street scene of the home, a map showing the location of the properties used in comparison, description of the intended users of the appraisal report, photo and description of all the rooms, and photographs of each comparable property used. Homeowners are responsible for paying the appraisal fees and they have a range.
There are things that home buyers should know too regarding home appraisals. Home buyers can have their deals out with home appraisals when they are buying the houses. As a home buyer, when you make an offer, towards the end of the process of buying the house, a mortgage lender will call for appraisers to appraise the home. After appraisal, the mortgage lender will compare the offer you made and the appraisal and if the appraisal will be less, he wont offer the loan. For buyers, that will be beneficial as they can negotiate for lower prices. If your deal is about to sink because of a bad appraisal, consider seeking a second appraisal.
Low appraisals will serve to point out to sellers that they have to reduce the price of their sale. Mortgage lenders will not lend more than the value of the home, and it is hard to find sellers who will buy without appraisals.