Understanding the Home Appraisal Process
Whether you’re buying a home, selling a home, or refinancing your existing mortgage, you’ll need a professional opinion on the value of the property – which is where a home appraisal comes into play. The Omaha movers at All My Sons Moving & Storage know it’s important for all parties involved to agree on the price of the home. A home appraisal is an unbiased professional opinion of a home’s true value, and it ensures the transaction is fair on all ends. It ensures the lender is not giving the borrower more money than the home is worth, and that the seller isn’t pricing their home at an unfair value. It’s a key component for all sides of the home buying process.
The buyer and the seller should be aware of the significance of the home appraisal process for many reasons:
A credible institution will not lend a borrower money without a proper home appraisal.
Homeowners have little to no control over the home appraisal process.
The appraisal value is used to determine whether the purchase price is a true market value.
How does a home appraisal work?
A home appraisal takes place when a professional appraiser takes a thorough examination of a property, both interior and exterior, prior to the closing. The point is to give a fair estimate on the value of a home by examining the property, comparing it with the initial purchase price, and comparing it with recent sales of similar properties in a 6-month period. Typically, the seller will pay for the appraisal.
The appraiser will keep the following factors in consideration:
Current market conditions
Quality of the neighborhood
Location of the home
Defects in the home, or damages that could adversely affect the value.
Recommended repairs that could increase the value before sale.
The home’s amenities, such as the number of bedrooms and bathrooms, functionality, and square footage.
The appraiser will adjust the home value if there are renovations or additions, but the value of these additions varies.
With this information in mind, the appraiser will calculate the value of the home. The appraiser may recommend repairs on the property, then return to the property later to certify completion.
All My Sons Moving & Storage of Omaha says the appraisal will be one of the first steps in the home closing process. If the appraisal comes in at or above the agreed contract price, the transaction will proceed normally. However, if the appraisal is valued below the contract price, it can delay or cancel the transaction.
Is an appraisal the same as an inspection?
These processes may seem similar, but they have different purposes. An appraiser is there to determine the value of the home. An inspector will check for defects that could be dangerous or cause financial loss down the road.
How does an appraisal work for you?
The prospective buyer may use a lowered value to their advantage to convince the seller to lower the price. On the other hand, a homeowner may be unhappy with their homes estimated value and disagree with it. Homeowners may dispute the value that an appraiser provides, but Omaha movers say this process can be difficult.
Once the appraisal process over and a price is agreed upon, call the Omaha movers at All My Sons Moving & Storage for full service packing and moving to your new home.