Understanding Home Appraisals and How It Impacts Your Property Value
The Real Estate Home Appraisal is a very important element in the process of buying a house and selling a house. In this post, we will cover the basic elements of home appraisal, also called real estate appraisals.
A home appraisal is one of the several factors to consider when buying or selling a house. The process of home valuation by an appraiser is a crucial factor because it affect how much the seller’s net, how much the buyer will pay for the home, and how much the lender will finance in the transaction. That is the simple definition of a home appraisal.
The appraisal is how we evaluate the correct value of a house. The outcome of the appraisal could mean a transaction will move forward or not, it has a big impact on the whole transaction itself. Buyers want to know if they will be paying just right or overpaying, lenders want to know that their investment is safe and at value, while sellers want to know if they are selling for the right price.
To determine the correct value of a house, the appraiser uses the comparative market analysis. To support their examination of the house and determine the true value, they use information from public documents, past community transactions, visual inspections, etc.
Some of the factors that influence an appraisal outcome include:
- recent sales of comparable homes
- recent sales within .6 mile radius from the home
- economic trands
- upgrades and updates
- floor plan
If an appraisal comes in lower, make sure to have your real estate agent reach out to the appraisal and get a better understanding on how they came to the outcome. Make sure to always hire a real estate agent to help guide you in the process. It is one less thing you will worry about if you have a competent agent along side you.
For more questions, and to work with our team, make sure to contact us at 702-850-0298.
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