You're Paying How Much?
Let’s try something. Close your eyes and picture…. wait, don’t close your eyes, keep reading. How about this, use your imagination to picture a kindergarten teacher, now a gardener, now a doctor, and lastly an appraiser. I bet you envisioned a stodgy, older man in suit who never smiles for that last one. While I doubt, this is true for all appraisers, I would have to guess that they got this reputation because their job requires them to be void of influence. They are to come in and assess the value of the home.
The step of having your home appraised isn’t created to slow down the buying process although it may feel that way because by the time you need an appraisal, chances are your heart is set on a house—by this point you have submitted an offer, the offer has been accepted and you have signed a letter of intent! You are so close! But, like we said, before you can move forward an appraisal must be done.
This appraisal is used to determine the that the loan you are getting is comparable to the value of your home. Lenders want to make sure that the house you want to buy is worth the amount of money that they are lending. This also benefits you as a buyer in making sure you are getting a fair price on the home. Appraisals are also a needed step when refinancing and existing property.
So back to our stodgy appraiser, why do they get to determine the worth of your home? Well, these folks are licensed professionals who there to assess the property and its location to determine market value. They take into consideration the size of the property, the number of rooms (particularly bedrooms and bathrooms), the age of the home, the quality, the features, comparable properties, and as mentioned, the location. To learn more about each of these factors and to find out more information on the step in this process, please check out our complimentary appraisal guide found here: http://info.smcapproved.com/appraisal-guide