Most people wish to buy a house for very personal reasons. Perhaps it’s the bathroom, which has the sense of a lovely, futuristic spa. Or there’s that two-tiered deck that was meant for gatherings. The standalone tub is unimportant to your lender. Alternatively, there’s the built-in outdoor fire pit. Their main concern is that the house you purchase is worth at least as much as your loan.
A house isn’t a home to them. It’s a piece of collateral. It’s harsh, but it’s true. If you are unable to make your mortgage payments for any reason, the lender may foreclose on your house and sell it to recuperate all or part of the costs. Although harsher, this is also true.
As a result, a home must be valued at or above the agreed-upon purchase price before you can close on it. This is where a real estate appraiser may help. Keep reading to learn more and contact Berkshire Hathaway HomeServices at (310) 373-0021 if you need help from a home buyers agent.
The Role of a Home Appraiser Is Neutral
The home you’re buying must pass an appraisal after you sign a home purchase agreement (a contract between you and the seller outlining the details of the pending sale) and before your lender authorizes your loan. That’s an assessment of the property’s value by an unbiased third party: the appraiser.
Is the appraiser well-versed in the big picture?
Agents should provide the appraiser with information on everything from the home’s major renovations, such as an extension, to the age of important systems and structures, such as the roof and HVAC system.
An appraiser is a professional who is either licensed or certified by the state. Their role is to determine a value opinion — how much a house is worth. Nobody has the appraiser on their side. This person is a contractor picked by your lender through an appraisal management business — a distinct, neutral entity that manages a roster of appraisers — and does not represent you or the seller.
The appraiser considers several factors
To estimate the value of a home, appraisers do an in-person inspection and apply five basic criteria of a home: it’s location, age, condition, any recent renovations or additions, and recent home sale prices in the area.
This is what you should expect during a home inspection
This is your guide to getting a house inspected, from finding an inspector to coping with unexpected. Keep your emotions in check and your sights on the prize while buying a home, and you’ll save money. Prepare to pay for the appraisal — or to bargain for a lower price.
In most cases, the home buyer is responsible for the appraisal fee, which is often included in the closing costs. The party that pays for the appraisal, on the other hand, is negotiable. It’s never a bad idea to ask if the seller will cover it.
How much money are we discussing? A professional house appraisal will cost between $330 and $440 on average. Costs vary depending on the square footage and unique features of the home, with larger or more exotic homes commanding higher assessment fees.
If you are ready to work with a real estate professional, contact Berkshire Hathaway HomeServices at (310) 373-0021 right away.