WHY YOU NEED PROFESSIONAL APPRAISAL
I have had great experience with a home appraising company located in South Jersey. Setting a correct price for your home is one of the most important steps to selling a house. If a price is placed too high, your home could be sitting on the market for months without receiving a buyer forcing you to cut the price down. If your home is priced too low, then you may be leaving money on the table when you accept an offer. Although many home sellers opt to go through the appraisal process themselves without professional assistance, in a tough market. Thus having a professional home appraisal done is an essential step to selling your home, determining your property value and deciding how much you will qualify for if you decide to take a second mortgage out on your home.
What is a Home Appraisal? A home appraisal is an opinion on value by a qualified, unbiased third party. Mortgage lenders require an appraisal to be completed when you are refinancing your mortgage. An appraisal is also completed in a transaction when someone is buying a home to make sure they have not overpaid for it.
Mortgage Lenders require an appraisal to ensure that homeowners are not overpaying for a property. Because if the borrower stops paying for the mortgage, the lender will take action to remove the borrower from home and sell it to recoup their money, this is why it is important for the home to be worth more than the money loaned. In essence, a home appraisal is a lawyer of protection for the mortgage lender.
Why get an appraisal? If you are selling your home, it is true that you can price your home yourself without the help of an appraiser or the advice of a real estate agent. However, many sellers who decide to sell their home have personal feelings towards their residence that can make an impact on their pricing decision. For example, it is easy to think that you can make a larger profit by simply increasing the price of your home, or you may think that your home is more valuable than its actual worth. Either way, this may result in overpricing your home, which means fewer buyers will be willing to consider your property.
A professional appraiser can give you an unbiased opinion based on market value of the property which can help you price your home right the first time instead of doing it down the road after you have tried for months to sell it at the higher price. An appraiser can give you an analysis by checking comparable home sales in the area, the pros and cons of your specific neighborhood, and the structure itself. The final report can be anywhere from 3 pages to a hundred, or more, pages depending on how detailed the appraiser is, and you can typically hire an appraiser for a couple of hundred dollars. This price might seem high, but it is well worth it especially if you are unfamiliar with how to price a home or how to do a market analysis.
The bottom line is that home appraisal is a very standard process these days in any real estate transaction involving a mortgage loan, it should be taken seriously, you should know how the appraisal works and what the value is based on, if you feel your home is undervalued you can speak with the appraiser and make your case or get a second opinion.