Are you planning to buy the house of your dreams? Have you been exploring the different residential real estate properties to make the right investment choice? If yes, you must consider getting residential appraisals for the chosen property as it is a significant step in the home buying process. Keep reading through to have a deeper insight into the property appraisals.
What is a residential appraisal?
An appraisal is the estimated cost of the property considering the current market trends and the value of neighboring properties. By comparing the prices of recently sold nearby properties, the appraisers evaluate the home carefully and come to the final price. The result of the residential appraisal also determines the amount that will allow you to borrow in order to purchase your dream house. The process of home valuation prevents buyers from paying more than the justifiable property price and exempts sellers from asking for an undue amount.
Who conducts a home appraisal?
To carry out the residential or commercial property appraisal process, a licensed third-party appraiser is hired. It is made sure that the buyer, seller, or lender does not have direct contact with the appraiser so that the decision is not biased. The property appraiser then conducts an in-depth evaluation of the house to make sure that its market value is fair.
Who bears the cost of a residential appraisal?
Usually, mortgage lenders ask for a property appraisal to be sure that the borrower is asking for a justifiable loan amount. As the lender schedules the home appraisal, the buyers of the property are expected to pay the appraisal fees during the closing or upfront.
What are the factors to be considered during property valuation?
Although the cost of residential appraisal services can cost around $400, but below mentioned factors can make these digits vary, including:
- The carpet area and complete size of the house
- The type of property
- The condition of the property
- Cost of the repair and maintenance required
- Location of the property
- The structural integrity of the house
- Visible defects
These factors can fairly increase or decrease the property’s value post evaluation, and the lenders also make the lending decisions accordingly. If there are any signs of potential issues, including pests or water leakage, the appraiser can further order inspections. If you are selling your property and wondering how to keep it in good condition, go through the following tips:
- Fix all the plumbing issues, roof leakage, etc.
- Get rid of any temporary or stubborn stains which may degrade your house’s value.
- Check for cracks in the ceiling or walls of the property.
- Ensure the economic life of roofs.
- Ensure all the utilities are properly functioning and are in good condition.
After addressing the potential issues that may decrease the value of the property, you can be sure to get the true worth of the property while conducting residential appraisals.