| When obtaining a mortgage, the Lender will require that a Home Appraisal be done to ensure the Lehigh Valley Property you are purchasing is worth the price. An Appraisal is done by an unbiased 3rd party that is not associated with either the home buyer or seller. It is the Appraiser's job to determine an EXACT price for a home.
A Licensed Appraiser will visit the home, gather statistical data on nearby home sales, then generate a detailed report placing an exact dollar amount on the home (based on their interpretation)
Yes, two appraisals can have two different values! There is some Subjectivity involved. |  |
Will the Appraiser require any Repairs to the Home?
When the appraiser visits the home, they will test the plumbing and heating systems. They will also review the home for safety items, look at the roof and take a general overview of the home to present to the Lender.
The Appraisal Report will contain any items that the appraiser feels may affect the home value or liability issues. Depending on the type of mortgage, some of the items may need to be fixed before the Lender will agree to loan the money to the buyer.
What Happens if the Home Doesn't Appraise at the Purchase Price?
The Bank lends on the purchase price. If the home does not appraise at the purchase price the seller must lower the price or the buyer will have to make up the difference.
Is a CMA (comparable market analysis) the same as an Appraisal?
No, a CMA is typically done by a licensed real estate agent (for no charge) and is used to determine a fair market value on a home in in order to put it up for sale. The CMA is not a guarantee of what the home is worth.
If I am Considering Selling My Home Should I Get an Appraisal?
For most situations, a CMA is fine.
When is an Appraisal not needed?
If a home is being purchased with cash, the home buyer may or may not make the purchase contingent upon an acceptable appraised value. The lender, who would normally require the appraisal, is not involved. The Home Buyer should take this into account when deciding about the offer on the home. Is the home worth the price? Your Real Estate Agent can help by pulling comparable properties to review.
As a Lehigh Valley Home Buyer, the Appraisal is important to ensure you are a purchasing a home worth the value.
In today's fluctuating Real Estate Market, the Appraisal is even more important. No one has a crystal ball so you need to make sure the home is worth what you are paying for it at the time of purchase. |