Home Appraisal: Everything You Need To Know

 When purchasing a home, especially for the first time, you might worry if you’re paying too much. However, if you’re applying for a mortgage, there’s always a value check incorporated into the buying process: the home appraisal.

 The bank will send a professional to evaluate the home in question and tell you whether its value matches the contract price. In case the appraiser says it isn’t, the bank won’t be able to finance your purchase at that particular price.

Appraisal day can trigger anxiety in both sellers and purchasers, but having a clear understanding of the process can make things less nerve-cracking.

Licensing and Certification

Appraisers should be licensed and certified. And they’re often required to undergo a standard evaluation process. Common home aspects that affect the valuation include the number of bedrooms, square footage, number of bathrooms, as well as the needed repairs.

Appraisers Do Evaluate the Value of Other Homes

Other than your home’s condition and features, the appraiser will also evaluate the selling price of other homes in the neighborhood. The appraiser will check out recent sales for homes similar to yours and utilize the selling prices to approximate the selling price for your property.
 
An Appraisal Isn’t a Home Inspection

An appraiser will typically look over your house to determine its general condition. This is often done on a scale of 1 to 6, where the bottom side indicates the need for serious repairs. An inspector will precisely test every system of your house, ensuring that the furnace works properly, the water pressure is fine, etc. Simply because an appraiser said your home is in good condition doesn’t necessarily mean that you can skip the inspection report.

At times, Appraisers Don’t Enter the Home

Though less common nowadays, drive-by appraisals still happen. Here, the appraiser evaluates your home by checking its exterior and utilizing comparable recent sales. If you recently had an appraisal, and you’re refinancing, the bank could accept a drive-by, which will possibly cost you less.
 
Buyers Don’t Always Attend the Appraisal

Buyers don’t usually attend a home appraisal, but the seller can comfortably remain present in the home during the process. This is particularly important since the appraiser could have some questions for the homeowner. The real estate agent’s presence may also be helpful, and it’s often advisable that owners provide written information, like a list of improvements as well as repairs they’ve done.
 
The Bottom-Line

Purchasing a home isn’t always an easy thing, especially when the use of a loan is involved. So, get expert house valuation services in Melbourne. The lender will send an appraiser to evaluate the condition and overall worth of the home in question before he or she can issue the loan. And with the following ideas at your fingertips, you can always enjoy a smooth home appraisal process. 

 

 
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