Understanding the Value of a Home Appraisal
March 6, 2019 |
The process of buying and selling a home can be stressful and emotional. Settling on the true value of a house or condo is a challenge. The seller may think the value is enormous, the buyer may have a much more shrewd valuation. For this reason, a home
appraisal from a neutral third party is essential to the process.
And it’s not just a good idea – it’s required when the buyer plans on getting a mortgage.
But how important is a home appraisal? And how does the process work?
Why You Need a Home Appraisal
The government sets the rules and regulations for Appraisers to determine the fair market value of a home. And it is this value that is used by banks and lenders to decide how much to lend for the purchase of that home. With that in mind, the home appraiser
assesses the structure and the property, compares it to similar properties in the area, and determines a value.
The appraisal is an estimate of how much the house or property would expect to sell for under normal market conditions. This estimate is then used as a base for the selling price of the house, and also to determine if and how much money a bank will lend
against that house.
Know this – the home appraisal is essential. Without an appraisal, a bank will not lend any money for a house.
What does the Appraiser do?
A home appraisal begins with assessing the basic information and condition of the home. This includes, but is not limited to, the number of rooms, what type of rooms they are, the floor plan, the age of the dwelling, amenities, and square footage.
The appraiser will take into consideration the general condition of the home but will not conduct a full inspection. For example, the appraiser will make sure there are electrical outlets, but won’t test them. The appraiser will note any obvious roof
damage, but will not climb up into the attic to inspect the support beams.
What a Home Appraisal Costs
Average costs for a home appraisal will vary by state, as well as by the individual appraiser. In general, appraisal costs tend to be in the $300 to $500 range. This can be higher when more than one site visit is required or if there is a rush order
to get the report done quickly. This cost may be paid prior to closing or the buyer's lender may allow them to pay at closing, avoiding paying out of pocket.
Contact the Appraisal Experts
No one knows the Gainesville housing market like Allison Ables. If you have more questions about property appraisal, home valuation, or how to maximize the value of your property, contact us today. We can address your concerns, and recommend
a reliable home appraiser. Call 352-371-1828, or click to send an email.