There are many different reasons why it’s necessary to have a home appraised. A home appraisal is a monetary valuation of your property, and if you are buying or selling a home you will want to know what the home is worth. Your local tax department will use an appraisal to determine how much you will pay in property taxes; and if you’re thinking about refinancing your home the bank lending you the money will also want you to have the property appraised to protect their investment. You’ll notice that even after you have purchased your home an appraisal will be needed in order to secure a home improvement loan, home equity loan, and also if you planning to use your home as collateral for business or any other venture. I will be discussing buying and selling your home and the appraisal process a little further in the next paragraph
When selling a home a real-estate sales person will do a comparative market analysis (CMA). This will take into consideration the selling price of similar homes in the same neighborhood over the past six months. The agent will then make allowances, add or subtract the value depending on the condition of the home, and account for any upgrades that may have been made. The CMA given to you by a real estate agent is not considered to be an official appraisal. Most real estate sales professionals understand the appraisal process, and are qualified to assist you in establishing a selling price for your home, but are not licensed appraisers.
As a buyer in need of a mortgage the lending institution will require an appraisal. The bank will order the appraisal from a licensed appraisal company. The person applying for the loan or mortgage will usually pay the appraisal fee. The bank will want to be sure the amount you are paying for the property is not greater than the value of the property thereby protecting you and their investment. If the transaction is all cash then the buyer may request an appraisal prior to signing a contract.
Hopefully you understand a bit better the various needs and uses for a home appraisal. Sometimes a formal appraisal will be required and other times the real estate sales person can assist you in pricing your home. In all cases, appraisals are done to determine the value of your property and are necessary to protect not only the bank but both the buyer and seller as well.
~Neil
Neil Gortler, CBR, SRES
Licensed Real Estate Salesperson
516-849-5895
Are you looking for a new residence, or maybe interested in selling your existing home? I can help you. Please call me at 516-849-5895. If you are a seller, do keep in mind my offer for a FREE No Obligation Market Analysis which will provide key information in determining the best list price for your home.
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CBR, SRES - Licensed Real Estate Salesperson
Phone: 516.849.5895 | [email protected]
As an experienced professional Neil will do the leg work, keeping you up-to-date with new listings and the various market conditions that may impact the home purchase process. Sellers can also benefit from his skills in finance, negotiation, contractual agreements, and RE marketing. Call today and allow Neil to guide you through the complexities of buying or selling your home, eliminating hassles, and stress.
Member of:
National Association of Realtors
Long Island Board of Realtors
Multiple listing service of long Island
New York State Association of Realtors