An appraisal is an inspection of the interior and exterior of your home. It also takes into consideration the asking and selling prices of similar homes in your neighborhood. Whether you are looking for a home or planning to sell your existing property, a home appraisal is important for several reasons.
Obtaining a Loan
All lending institutions require an appraisal before deciding to loan money for the purchase of a home. Not only do they want to know the home or property is worth the asking price, but they do so to protect themselves in the event that you default on the loan. They want to be certain they can sell the home and recoup their money.
Another reason the appraisal is so important is to make sure the home is not overpriced. This is a good bargaining point for prospective buyers. If the asking price is over the amount the home is appraised for, lenders are not going to approve a loan even if you have perfect credit. An example of a realty company that provides appraisals for homes for sale in northern suffolk va is Chorey & Associates Realty, Ltd.
Appraisals Can Help Sellers
When you are ready to sell your home, an appraisal can help. If the appraisal is lower than the price you were considering, find out why. It may be something that you can improve to add value to your home. There may be maintenance issues or repairs that can be made to increase the value. The appraisal will include the condition of the home and any problems noticed. This can help you to see what needs to be addressed in order to get a higher appraisal.
Keep in mind that while appraisers are looking at the overall condition of the home and property, it should be clean and in the best shape possible. A well-cared for lawn makes a huge difference to the curb appeal of the home. When selling, buying, or even refinancing a home, being prepared for an appraisal is one of the most important first steps.