If you plan to buy, sell, or refinance a home, you will likely need a real estate appraisal before the transaction goes through. A residential real estate property appraisal offers a professional opinion on the value of a property. There are many ways a real estate appraisal can impact a real estate transaction. Knowing how appraisals work and how the information from these assessments will be used is crucial. Here are three things to know about a residential real estate property appraisal.
What's Included In The Appraisal
A real estate appraisal is a professional analysis of a property, and there are a few critical things included in this report. A home appraisal looks at a property's condition, location, and how it compares to nearby properties to determine its value. Appraisal reports will typically include pictures of the property and the details used to determine the value. Tax information, land records, and the market values of nearby properties may also be included in a real estate appraisal report. An appraisal report will tell you a lot about a property.
How Much They Cost
The cost of residential real estate property appraisal will vary depending on property size and the rates of the professional appraiser. You want to make sure you use a licensed or certified appraiser that will offer the detailed report you need. Most real estate appraisals will cost between $300 and $450 but can cost upwards of $800 for a larger home. Some homes may also be more challenging to appraise than others, increasing the appraisal costs. If you are buying or refinancing a property, you will usually be responsible for paying for the appraisal.
How They Impact Transactions
Another thing you need to know about real estate appraisals is that they can create roadblocks to refinancing or selling a property. If you want to purchase a home, a lower-than-expected real estate appraisal may lead your lender not to approve your mortgage. Low home appraisals can also make it challenging to refinance your home. If you are selling your home, you may need to lower your asking price to find a buyer or only accept a cash-only offer.
Real estate appraisals are necessary if you want to buy, sell, or refinance a property. There are three things you should know about real estate appraisals. First, you should know what details are included in an appraisal report. Second, real estate appraisals cost at least a few hundred dollars. Finally, knowing how a real estate appraisal can impact a real estate transaction is crucial.