When A House Appraisal May Be Necessary

While it isn’t something that everyone thinks about, from time to time a home may need to be appraised to determine its value. This process typically doesn’t take very long. An agent comes to the home and walks around both inside and outside, perhaps asking a few questions of the homeowner, and then leaves to write his report. The report can take a few days to a couple weeks to be completed and passed on to interested parties. So when does a homeowner need to worry about getting a House Appraisal done?

When Selling a Home

After a home inspection is completed, a home needs to be appraised if there is going to be a home loan to help cover the costs of purchasing the home. The bank wants to make sure that the money it is lending will be able to be recovered should the buyer wind up defaulting on the home loan. This means that if the price agreed upon for the home is a lot above the value that the appraiser comes up with, there may be some renegotiating involved, depending on the purchase agreement. The homeowner is typically responsible for paying for this appraisal, which often costs somewhere between $250 and $500, although this cost is often rolled into the mortgage along with the other closing costs.

When Refinancing

Refinancing a mortgage is basically applying for a new home loan at a lower rate, then this new loan is used to pay off the old one. As with the original home loan, the bank will want to make sure it’s a sound investment, so a House Appraisal is often necessary. There are a few cases when the mortgage lender will be willing to refinance without a new appraisal, but this can’t be counted on.

Ensuring Good Results

There isn’t a lot that a homeowner can do, but do make sure to have everything looking its best when the appraiser shows up. Also, make sure to note any improvements that you’ve done since the house was purchased, as this can make a difference in the process. Having a real estate agent note the selling prices for similar homes in the area may also be helpful.

Contact Spectrum Real Estate Services for more information about house appraisals or other real estate services. They will be able to help will all your home buying or home selling needs. You can also follow them on Twitter for more information.