Home Appraisals (Part 2 of 2)
November 3, 2008
On the previous page, the differences between a home appraisal and a home inspection were discussed. Also, information on how a professional home appraiser conducts an appraisal was provided.
Benefits of a house appraisal and situations when a home appraisal might not be necessary are listed below.
What does a homeowner get from a house appraisal?
A home appraisal must be complete in order for a bank to approve a home loan. In addition to having a third party determine the market value of a house, homeowners receive the following benefits from having an appraisal completed:
- A side-by-side comparison of three comparable properties.
- Evaluation of the local real estate market.
- Analysis of home flaws (leaking roof) and potential barriers to a higher property value.
- Average sales time estimate.
- Home location confirmation (if a home is in a development, etc.).
When is a home appraisal NOT necessary?
Home appraisals are required for most home sale approvals, but they can cost anywhere from $300 to $500, depending on location. Unless a homeowner has made a firm decision to refinance or sell their home, an appraisal can be very costly way to determine your current house value.
While an appraisal report is the only report banks will consider when it comes to loans, homeowners in the early stages of deciding whether or not to refinance or sell their home can save the appraisal expense and receive a free Comparative Market Analysis (CMA) from a local real estate agent. CMAs help homeowners determine a realistic selling price, and experienced agents often come very close to an appraisal price with their CMAs.
GetMyHomesValue can connect you with a local real estate agent to obtain a free, no obligation CMA today! To get started, click here, type your zip code in the box in the top right corner and follow the instructions on the next page.
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