The Ins and Outs of a Home Appraisal

 A home appraisal is a big part of the home-buying process. Having a better understanding will allow you to better negotiate and avoid the stumbling blocks. A home purchase is a financial obligation but it also is a very emotional decision. When it comes to the appraisal of your home, this is what the mortgage lenders will be most concerned about.

A home appraiser is a middle man literally speaking. An appraiser will always be your neutral opinion. In order for you to obtain a mortgage, your home must pass an appraisal. An appraisal is an assessment of the property’s value by an unbiased third party.

The unbiased third party is known as the appraiser who is state-licensed or certified. They will look at the home as a neutral party taking into consideration the home’s location, age, condition, additions or renovations and recent sales of comparable homes.

When you are in the midst of your home purchase, you the buyer will be the one who is responsible for paying for the appraisal. The appraisal fee is usually bundled in with your closing costs. A typical fee would be anywhere from $330 and $440. The cost will depend on the home’s square footage and if it has an unusual floor plan.

Once the appraiser completes the appraisal, they will present you with a report. The report will give an analysis of the property and data on comparable homes. Once your appraisal goes to you and your lender. If the appraisal matches the value of the price you and the seller agreed upon, then your loan will go to process. If the appraisal comes in higher, then you gain immediate equity. If the appraisal comes in lower, you will have to come up with the difference between what the lender will lend you and the amount you agreed upon with the seller.

Remember going at this alone is very stressful. Go with a local sales agent who can help you with the homebuying process from start to finish. A local agent will also be a great source for the perfect lender for your needs.

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Owning A Home Is Not Only Smarter Than Renting, It Is Also Cheaper

 Even though house prices are on the rise and mortgage rates are starting to increase, buying a home is still a smart move. ATTOM Data found that owning a home in 2022 is more affordable than renting across most of the country.

“. . . Owning a median-priced home is more affordable than the average rent on a three-bedroom property in 666, or 58 percent, of the 1,154 U.S. counties analyzed for the report. That means major homeownership expenses consume a smaller portion of average local wages than renting.”

Not everyone is in agreement with ATTOM Data. CoreLogic's Single-Family Rent Index revealed that single-family rent saw a huge growth year-over-year. Single-family rent growth hit its sixth consecutive record high. . . . Annual rent growth . . . was more than three times that of a year earlier.

Remember even if the house prices are rising along with rent prices, you benefit from owning. When you rent the increased monthly payments go directly into your landlord's pocket. A monthly mortgage payment is a form of savings in a sense. You are building equity which you will get back once you sell your home. Homeownership also takes up a smaller portion of your paycheck.

If you are in the market to purchase a home, now is a great time. Contact a Realtor who can help you through this process. Having a trusted advisor on your side is the smart way to go.

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