Home Appraisal Tips For you!

Home Appraisal Tips For you!
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Most people have so many personal reasons for wanting to buy a new home. For that reason, a home must be valued at, or above, the agreed-upon purchase price, and this has to happen before you can close on a house. That’s where a home appraiser comes in.

  • Be prepared to pay. Generally speaking, the home buyer is responsible for paying for the appraisal — and the fee is typically wrapped into your closing costs. However, who pays for appraisal is negotiable. It never hurts to see if the seller is willing to cover it.

  • Be patient. Because it takes appraisers some time to visit your house and write a report — up to a week, or longer in a busy housing market — your lender will order the appraisal immediately after you sign the purchase agreement.

  • Make the low appraisal work. If the appraisal is low, your agent will give you other options or recommendations about how to proceed. In general, your best strategy is to persuade the seller to lower the sales price, or to split the difference between the home’s appraised value and the price with you. This is when you can rely on your agent and their negotiating skills — to go to bat for you.

  • Ask your lender for a second appraisal. If you don’t want to take the first option, a purchase agreement home appraisal contingency gives you the power to walk away from the deal scot-free, and with your earnest money deposit in hand.

  • A home appraiser is neutral. After signing a home purchase agreement (the contract between you and the seller about the terms of the pending sale), and before your lender approves your loan, the home you are about to purchase must pass an appraisal — an assessment of the property’s value by an unbiased third party: the appraiser. Appraisers survey a house in person, using these main criteria to determine the value of a home:
  • Location
  • Age
  • Condition
  • Additions or renovations
  • Recent sales of comparable homes

 

 

 

 


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