Premiere Plus Realty Co.
Richard T. Dingfelder, Premiere Plus Realty Co.Phone: (239) 961-9896
Email: [email protected]

What Home Buyers Should Know About Appraisals

by Richard T. Dingfelder 11/24/2019

Home appraisals are an important part of the buying and selling process. Lenders use appraisals to make sure that the home is worth what the borrower is paying. A home’s appraisal value is based on a number of factors, all of which we’ll discuss in this post.

Whether you’re a buyer, seller, or are just learning about the process of buying a home so you’ll be better equipped in the future, this article is for you.

How is a home appraisal different from an inspection?

While home appraisals and inspections are performed by licensed or certified professionals, they have to different functions. An inspection ensures the safety of a home, as well as whether or not it will need repairs in the immediate or near future.

Appraisals, on the other hand, aim to value a home based on its property value, the size of the property, and the location of the property. The condition of the home is a factor in valuing a home, which is why some people confused appraisals with inspections.

Who pays for appraisals?

Like most closing costs, a home appraisal is a burden that falls on the buyer. Typically, the lender you choose will work with will actually order the appraisal. The cost, which usually amounts to a few hundred dollars, can be added to your closing fees. You can find the cost for an appraisal listed on the Closing Disclosure document provided by your chosen lender.

Which factors determine the home’s value?

To appraise the house itself, appraisers will look at the condition of the home. They’ll also weigh the features of the home in their valuation--things like the number of bedrooms and bathrooms, for example.

However, the two key characteristics of a home that contribute to its value are its age and size.

Which external factors contribute to the home’s value?

As you might suspect, the location of your home matters greatly when it comes to appraisals. Homes are appraised based off of average prices for their neighborhood and region.

Other location factors include how accessible the home is, if it’s located on a waterfront, and whether it has desirable views.

When does a home get appraised?

While your experience may vary based on your specific circumstances, most appraisals occur after a buyer has signed a purchase contract. One this is done, the lender will take the steps necessary to order and process the appraisal.

How long is the home appraisal process?

Once the buyer has signed a purchase contract, the appraisal is usually completed and processed within 7 days. The appraisal report will be sent to the lender. This report contains the appraised value of the home. Buyers are entitled to a copy of this report, and should keep one for their own records.

About the Author
Author

Richard T. Dingfelder

Rick’s strong communication and negotiating skills, extensive marketing knowledge and professional integrity are just some of the attributes that set him apart as a REALTOR®. Rick is a driven, goal-oriented, licensed REALTOR® that will professionally manage all aspects of your transaction, understanding the importance of a real estate transaction. His clients can rely on more than 10 years of experience as well as a unique marketing plan customized to stand out from the competition. An impressive 45% referral rate as a REALTOR®, Rick credits his willingness to go the extra mile, winning attitude and drive, as just some of the elements that make him successful. Rick specializes in beach, gated, waterfront, planned, resort, retirement and new home subdivisions in his exclusive territory. Adding to his commitment and persistence, Rick loves where he lives. A recent area resident, he has been visiting southwest Florida for 30 years, crediting the beautiful weather, the friendly people and the countless recreational opportunities as a few of the reasons why it’s a great place to call home. Rick is very energetic in his community as an active church and competitive tennis league member while playing golf, fishing, scuba diving and traveling in his free time. While Rick holds CRS, GRI, ABR, SRES and ePro designations, as well as memberships in NAR, NABOR and FAR. His reputation is built on a foundation of hard work and helping his clients achieve their goals. The distinctive combination of business experience, broad marketing knowledge, and superior customer service prove that Rick personifies his commitment, as “Proactive – Experienced – Professional.”