Buying and selling a home can be a very confusing process but one of the key pieces of the puzzle is a home appraisal. An appraisal can be one of the most valuable tools for a potential buyer. This can tell you whether you are paying too much for your new dream home or even tell the seller if they are asking too little for their home. The appraisal will give you the fair market value of the home which is an idea of what the home and the land it is on are actually worth. This is also usually the maximum amount a lender will be willing to loan you to purchase the home.
There are several different kinds of appraisals that can be done, the most common is the sales comparison approach. This involves getting comparables or comps: homes in the nearby area that are similar in acreage, lots or home design.
When it comes to choosing the right appraiser there are several ways to do this. There are online databases and real estate agencies who can recommend an appraiser for you. The cost of the appraisal can vary however an average cost is about $300.00. The appraiser will come out to the home and evaluate it based on several different categories. They will look at things like the structure of the home and the foundation as well as any upgrades and permanent fixtures to decide what they feel the home is worth on today’s market. Another key piece to pair with the appraisal and something that can help give a closer true value is to have a home inspection completed.
This will offer a glimpse into things the appraiser doesn’t do like plumbing or electrical issues and sometimes hidden issues like mold, foundation problems, etc. All of the information is then prepared in a full report by the appraiser for the buyer or seller. Getting a good appraisal will help you as a buyer to know you are making a wise investment for your money. Come speak with us at the Bishop Group in order to answer any questions to make you feel comfortable and empowered with the home buying process.