Home Appraisal
A home appraisal is a vital thing to have, regardless of whether you are looking to buy a home, or looking to sell yours. A qualified home appraiser will give you an accurate value for the property that includes a myriad of different components, from home specific ones to market wide ones. But why are these appraisals so important? Well the reasons differ depending on whether you are buying or selling.
If you are looking to buy a home, a home appraisal is important for two reasons. Firstly (and less importantly) it lets you know if you are paying a fair price for the property, or if you are paying above or below market value on the home. A home may look like a great deal at first glance, selling for tens of thousands less than others in the area, but when you find out the roof leaks, the furnace is ten years old, and the driveway is going to need replacing, suddenly that deal might not look so good. Secondly (and more importantly) the mortgage company that gives you a loan for the home will approve a loan based on two factors. They will pre-approve you for a certain amount based on factors like job stability and income. But if your home appraises for significantly less than its selling for, a mortgage company will not sign off on the sale, which leaves you without financing.
As a home seller, you have similar, but not identical reasons for getting a home appraisal. Again, the first reason to do it is to get a fair market value for your property, so that you can list it at a price that will both sell the house, and ensure that you get a fair deal out of it. The second reason for a seller to get an appraisal is that oftentimes the cost of improving an aspect of the home (such as the furnace) is far less than the increase in home value it provides. Not only does an appraisal tell you what your home is worth, it will tell you why it is worth that. So if putting in a new air conditioner and installing windows will cost you $8,000 but increase your home’s value by $20,000, then not only will your home have a new selling point, but you’ll be making a better profit off your investment in your home.