When buying a home, one of the things that will happen as part of the home buying process, in most instances, is an appraisal of the property. The appraisal will help to determine the value. This article from Redfin does a great job of letting you know what appraisals are used for and what an appraiser is looking at in determining the value of the home. Enjoy the article and give me a call if you have any questions or have any real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 cell
indyhomepro@outlook.com
Source: Redfin | Repost Houterloot 8/4/2021 -
You found the house, and you and the seller have agreed on a sale price. Congratulations. Now it’s full steam ahead to closing, right? Not so fast. Some very important steps to the home buying process are just ahead, and one of those is the home appraisal. Read on to learn exactly what home appraisers look for in determining the value of a house.
What are home appraisals used for?
The purpose of the appraisal is to provide a fair and unbiased market value of the home. It’s an essential part of your loan package, and lenders won’t provide financing for the property without one. The house is collateral for your loan, so unless you’re paying cash for the property, you’ll need an appraisal.
The home appraisal provides the lender, and you, with verification that the agreed-upon sale price isn’t too high. If the appraised value is higher than your agreed-upon sale price, that’s okay because that just means the home is worth more than what you’re paying for it – instant equity... It’s another story if the appraised value comes in lower than the sale price, and we’ll cover that a little later.
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