What are appraisals exactly? It's a home valuation performed by a third party that has been hired by a lender to determine the value of a home in a real estate transaction
Looking to sell a home in Southern California?
Looking to buy a home in Southern California?
Appraisals are an opinion of the bank and the appraiser to determine what they feel is the value of a property. Mostly they look at how your property compares to similar properties in the area or those that have recently sold in the market.
Appraisers are independent third party groups hired by lenders who compare features, benefits, and upgrades to recently sold properties to determine what the home would sell for if it had to be sold tomorrow at a foreclosure, for example. The appraiser comes to the property and takes photos and measurements so they have a comparison of comparable homes. Remember, it's an opinion; ultimately a home is worth what a buyer is willing to pay for it.
Appraisers are independent third party groups hired by lenders who compare features, benefits, and upgrades to recently sold properties to determine what the home would sell for if it had to be sold tomorrow at a foreclosure, for example. The appraiser comes to the property and takes photos and measurements so they have a comparison of comparable homes. Remember, it's an opinion; ultimately a home is worth what a buyer is willing to pay for it.
"The appraisal can affect a buyer in many ways."
The appraisal can affect a buyer in many ways. Let's say you're going the conventional loan route; the bank is only going to loan 80% of the property value if you put in 20%. If the home's value is appraised lower than the offer, the seller may agree to lower the price. In a hot market like today, the seller may ask the buyer to pay the full contract price or split the difference between the agreed upon price and the appraisal value. Cash buyers can be more attractive to sellers because they don't have to worry about appraisal value. This is true for those making a larger down payment as well.
Lastly, there is something called a Time of Death Evaluation. This is where you determine the value of a property at the time of death when the owner passed away. That's a service we can provide free of charge. If you have any other questions about appraisals or time of death evaluations, please reach out to us!
