Once you find the home of your dreams and you've agreed with the seller on a price, it's advantageous to pay for a home appraisal. Getting your home appraised is one way of making sure you're getting a fair market price based on multiple home evaluation factors. Here's a look at how professional appraisers arrive at home values.
Why Do You Need an Appraisal?
It's important to get a home appraised before you purchase it so that you aren't surprised in the future if your valuations don't match the market. Appraisers can tell you about home vulnerabilities the seller might have overlooked. For example, if the home is infested with termites, you'll find out from the appraisal. Water damage can stay hidden for a long time until an inspection reveals it's a worse problem than thought.
When the appraisal reveals items that need repair work, the seller may either lower their asking price or agree to fix the problems before the deal is closed. Another reason it's important to conduct an appraisal prior to buying a home is to ensure it doesn't pose health or safety risks. Making sure the structure is up to code is another essential item on the home buyer's checklist.
What Do Appraisers Check?
You should accompany your appraiser during the home inspection so that you can witness risks identified by the inspector. This comprehensive evaluation can take some time, so relax and be prepared to devote a few days to this valuable process. Make sure the seller understands the home should be cleaned out and free of clutter for the inspection walkthrough.
The appraiser will take notes of the general health of the home, whether or not it meets local codes and what renovations are needed. They will pay close attention to the roof and ceiling to check for water leaks, which can cause long-term, expensive damage. These leaks are sometimes hidden behind wall decorations. Any air or water leaks can lead to energy waste.
The inspector will check all the appliances built-in into the home, such as the heating and air conditioning system, dishwasher, and oven. If you don't test every appliance, you can't determine what does or doesn't work. The inspector will test the security system and make sure it does what the manufacturer claims. Other items on the checklist include doors, windows, faucets, insulation, and light fixtures.
While the appraisal might not cover every square foot of the home, it will cover all the major components. You will at least come away from the experience knowing what extra costs may be added to your purchase unless you negotiate a better deal.
When searching for "real estate loans near me," be aware that the best loans aren't always the ones closest to home. Working with a real estate firm that understands your goals of owning and investing in homes can make quite a difference. Getting a home appraisal before buying is a basic principle you should not ignore. Contact Valerie Brownat (702) 826-1545 or more information.