April 14, 2022 | Sexton Real Estate Group
If you’re in the market for a new home, or if you’re just curious about the value of your current one, you may be wondering about home appraisals. What are they? How do they work? And what can you expect during the process? In this article, we’ll provide a practical guide to home appraisals – answering all of your questions and giving you an idea of what to expect.
Research On Home Appraisals
Appraisals are typically required when refinancing a home or applying for a home equity line of credit, but may also be needed when selling a home.
The appraiser will visit the property and take into account a variety of factors, including the property’s location, condition, size, and amenities. The appraiser will also look at recent sales data for similar properties in the area to arrive at an estimate of the property’s value.
Find Out Who Needs It And Why
A home appraisal is required if you’re refinancing your home or applying for a home equity line of credit. In these cases, your lender will order a home appraisal to determine the market value of your home. A home appraisal is also sometimes required when selling your home.
While not always required, a home appraisal can also be helpful if you’re planning to make improvements to your home and want to know how much additional value the improvements will add.
If you’re considering ordering a home appraisal, there are a few things you should keep in mind. First, appraisals can be expensive, so be sure to check with your lender to see if they will cover the cost or if you will be responsible for paying it. Second, the home appraisal process can be time-consuming, so be sure to factor that in when you’re planning your home improvements.
Know That A Home Appraisal Is Not The Same As A Market Value
Home appraisal and market value are not the same things. A home appraisal is an estimate of the worth of a home by a professional appraiser, while market value is what a home would sell for on the open market. Home appraisals are typically used in mortgage lending, to determine the loan amount that a lender is willing to extend to a borrower.
Market value is what a home would actually sell for if it were put up for sale. In most cases, the market value of a home will be lower than the appraised value, because buyers are usually looking for homes that need some work or updating.
Understand That Home Appraisals Do Not Equate To Home Inspections
Home appraisals and home inspections are two distinct services performed for different reasons. A home appraisal is generally required by a lender when you’re applying for a home loan. The appraisal is meant to give the lender an independent estimate of the value of the home as collateral for the loan. Home inspections, on the other hand, are typically requested by homebuyers (or sellers) and are meant to identify any major problems with the home that might need to be addressed before closing on the sale.
While both home appraisals and home inspections can be helpful in their own way, it’s important to understand the difference between the two services before making any decisions about your home.
Learn What Home Appraisals Are Meant To Accomplish
In order to understand how home appraisals work, it is first important to understand what an appraisal is and what it is meant to accomplish. An appraisal is simply a professional opinion of value. When you are buying or selling a home, the bank will require an appraisal to be done in order to determine how much they are willing to lend or how much equity is available if you are using your home’s value as collateral for a loan.
The most common type of home appraisal is the Comparative Market Analysis CMA. In a CMA, the appraiser will look at recent sales of similar homes in your area in order to come up with an estimate of your home’s value. Other factors that may be considered include the size and age of your home, any special features or upgrades, the condition of your home, and the location.
The appraiser will also take into consideration any recent trends in the housing market that could impact your home’s value. For example, if there has been a lot of new construction in your area, that could lower the value of your home because there is more competition. On the other hand, if there have been very few homes selling recently, that could mean that your home is worth more because there is less supply.
It is important to remember that an appraisal is just an estimate of value and not an exact science. There are many different factors that can impact your home’s value, so it is always best to speak with a professional appraiser if you have any questions.
If you’re in the market to buy or sell a home, it’s important to understand what a home appraisal is and how it can benefit you. Here at Sexton Group Real Estate Property Management, we want to make sure that you have all the information necessary to make informed decisions when it comes to your biggest investment. So please don’t hesitate to call us today and let us help you navigate this process. We look forward to hearing from you soon!
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