14 Feb What is a home appraisal?
What is a home appraisal?
An appraisal is an unbiased opinion of a home’s value. Appraisals are commonly used in the sale and purchase of a home and in mortgage refinances. In a sale and purchase an appraisal is used to determine if the home’s contract price is appropriate. They use condition, location, features and other sold comparables to come up with the value.
If it is being used for a purchase and sale, then the lender orders the appraisal. The costs range $400-600 for an average priced house in the Twin Cities of Minnesota. The cost is paid by the buyer.
Appraisers should be licensed or certified and that is required in all 50 states. In addition, they should be familiar with the local real estate market.
What are some things the appraisal report just include?
· A street map showing the appraised property and comparable sales used.
· An exterior building sketch.
· An explanation of how the square footage was calculated.
· Photographs of the home’s front, back, and street scene
· Front exterior photographs of each comparable property used.
· Other pertinent information—such as market sales data, public land records, and public tax records—that the appraiser requires to determine the property’s fair market value.
If the appraisal comes in less than purchase price, then your real estate agent needs to negotiate on your behalf. In that event the sales price must come down to the appraisal amount, the buyer must come up with additional monies or the purchase agreement is canceled.
It is a step in the finance process and another reason to have an experienced real estate agent on your side to assist you.
· I hope you enjoyed “what is a home appraisal” and if you have any questions…just call me. I am always available to answer your questions.
Look for more articles and videos in the future on different aspects of Minnesota real estate and our state of Minnesota.
Real estate is a wonderful investment!