Home Appraisals: What They & How They Work

No matter if you are buying or selling a home, the home appraisal process is a key step in the process. What exactly is a home appraisal? It is an unbiased, professional estimate of the value of a property for sale.

As a buyer, a key part of your mortgage is having the sales price confirmed as fair for your lender. They will always require a home appraisal before they issue you your mortgage. This is because they want to protect their investment. If the actual market value of a property is lower than the sales price and you default on the mortgage, the lender won't be able to sell the property for enough money to cover the loan.

The appraisal process typically occurs after an offer has been made and an inspection is complete. If you are the buyer, typically this is a cost you will incur and run a couple hundred dollars. The appraiser will review your property and use comps to determine the value of the home at the time of appraisal. The report is then sent directly to the lender, however you can request a copy of the appraisal. Tip, the appraiser should be a qualified professional who is licensed or certified to do the work and has no direct or indirect interest in the transaction. If everything lines up properly with the appraisal, your purchase will proceed.

Appraisals aren't only for buyers though. Some sellers will get appraisals to help determine what value they can expect for their home. Sometimes homes that have gone under many renovations or simply haven’t been appraised in a long time will complete this process. Remember, a strong appraisal means you maximize your home's potential sale price. A good appraisal on your home means your agent should be able to get you strong offers and get you the most for your property.

Here at Jump Realty, all of our agents put their customers' needs at the forefront of their work. If you are thinking of buying or selling our agents can help you prepare to handle the market. They’ll give you honest advice on what course of action is best for you in their professional opinion and will always put you first! With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!

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