Buyers should know what the house is worth BEFORE they write an offer…
When you’re buying a house, you want to make certain you get “the most bang for your buck,” or, the highest value for your dollar. Yet, how do you know if you’re paying Fair Market Value for your dream home?
Simple, by hiring a certified property appraiser who will tell you the current value of your dream home before you put pen to paper.
By hiring a professional real estate appraiser on your own, you are getting an unbiased expert opinion of the home’s worth based on today’s ever changing, real estate market.
A home appraisal will determine if the contract price is appropriate given the home’s condition, location, and features. An appraisal could save you from potentially making an over-valued purchase.
Appraised Value. Why Is It Important When Buying A House?
A property’s appraised value is influenced by:
- Recent sales of similar properties known as comparables and current market trends.
- The home’s amenities.
- External or functional obsolescence.
- The neighborhood or community.
These are only some of the key factors in determining the home’s value.
A skilled appraiser will do a complete visual inspection of the interior and exterior of the home you are wanting to buy. Any conditions that adversely affect the property’s value will be in the notes.
The appraiser will then provide you with a complete analysis and report with his or her professional opinion of value.
Pre-Purchase Appraisal Benefits
There are many benefits in having a pre-purchase appraisal.
Having the home you are considering appraised before you sign a binding legal contract will:
– Reduce the risk of overpaying for the home.
– Be useful as a negotiating tool if the list price of the home is higher than the appraised value.
– Provide some insight as to how a lender may value the property. If you are considering obtaining a mortgage, this may avoid a future problem.
Sure, you can pay more for a property if you would
The law surrounding residential real estate appraisals is complicated and the facts of each case are unique. This article provides a brief, general introduction to the topic. As with any legal matter, we highly recommend consulting with an attorney. For more detailed, specific information, please contact Michael Mila, residential real estate appraiser.