April 14, 2022 | Sexton Real Estate Group
You may have heard that home appraisals are all about determining a property’s value for the purpose of insurance or tax assessments. But what you may not know is that there’s a lot more to it than that. Home appraisals can provide insights into a home’s marketability, as well as its condition and repair needs. So if you’re curious about what goes on during an appraisal, read on! We’ll dispel some of the myths about home appraisals that you may still believe.
Myth #1: The Home Buyer Always Pays For The Appraisal
One of the most common myths about home appraisals is that the home buyer always pays for the appraisal. However, this is not always the case. In some instances, the home seller may agree to pay for the appraisal as part of the sale negotiations. Who pays for the appraisal will be determined during the sale negotiations between the home buyer and the home seller.
An appraiser will look at a variety of factors when determining the value of a home. This includes things like the size and layout of the home, the condition of the property, any upgrades or renovations that have been made, and the location of the home. The appraiser will also take into account recent sales of similar homes in the area to help determine the value of the home.
An appraisal usually takes a few hours to complete. The appraiser will need to see the inside and outside of the home and may need to take measurements. They will also need to review any documentation related to the home, such as sales contracts, property tax records, and home inspection reports.
Myth #2: The Appraiser Is On The Lender’s Side
Many home buyers believe that the appraiser is working for the lender, and consequently, is trying to low-ball the value of the home in order to keep the loan amount smaller. In reality, however, appraisers are independent professionals who are hired by either the buyer or the seller (depending on who pays for the appraisal) in order to provide an objective estimate of the home’s value.
While it’s true that lenders require an appraisal before they’ll approve a loan, the appraiser’s job is simply to provide an accurate assessment of the home’s worth – not to protect the interests of the lender.
Myth #3: Appraisers Always Look for Flaws
One of the most common misconceptions about home appraisals is that appraisers are always looking for flaws. This simply isn’t true. While it’s true that appraisers are trained to look for any potential problems with a home, they’re also looking at the home’s overall condition and value. In other words, they’re not just looking for ways to devalue your home.
When appraising a home, it’s common for appraisers to look for any potential flaws that could lower the home’s value. However, this doesn’t mean that appraisers are always on the lookout for reasons to lower your home’s value. In fact, most appraisers are fair and objective when conducting their evaluations.
Myth #4: Appraisals Always Take a Long Time
One of the most common myths about home appraisals is that they always take a long time. In reality, appraisals can be completed fairly quickly, as long as the home being appraised is in good condition and there are no major problems with the property. If there are any issues with the home, such as extensive damage or needed repairs, it may take longer for the appraisal to be completed. However, in most cases, an appraisal can be completed within a few days.
An appraiser is a professional who assesses the value of a home. Appraisers use many different methods to determine the worth of a home, but the most common method is to compare it to similar homes that have recently been sold in the area.
Home appraisals are important because they give buyers and sellers an objective opinion of a home’s value.
Myth #5: Not All Home Purchases Requires An Appraisal
Most homebuyers don’t know that. If you’re buying a home, it’s important to understand the appraisal process and what role appraisers play in home buying. Appraisals are not required for all home purchases. In fact, many times buyers waive their right to an appraisal in order to save on closing costs. However, if you are obtaining a loan from a lender, they will likely require an appraisal in order to determine how much money to lend you.
Appraisers look at many factors when estimating the value of a home, including its size, location, age, condition, features, and recent sales prices of similar homes nearby.
So, what’s the truth? Are home appraisals always accurate? Do you have to get an appraisal for every home purchase? What should you do if there are problems with your appraisal? We’re here to help clear up some of the myths and answer your questions. Give us a call today–we would be happy to chat with you about this important process.
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