#TipTuesday: Appraisals—It’s Not a Home Inspection

Appraisals—It’s Not a Home Inspection

You’ve written an offer, it’s been accepted, and the paperwork is off to the bank. What’s next? The appraisal. This step ensures that the home’s value aligns with the agreed-upon purchase price. Here’s what you need to know to navigate this critical step with confidence.

What is an Appraisal?

An appraisal is an unbiased evaluation of a home’s market value conducted by a licensed appraiser. Unlike a home inspection, which examines the property’s condition, an appraisal focuses solely on determining the home’s value.

Why Appraisals Are Important

Lenders want to ensure they’re not lending more money than the home is worth. An appraisal protects both the bank and the buyer by:

• Confirming the Home’s Value: Ensuring it aligns with the purchase price.

• Preventing Overpayment: Helping buyers avoid overpaying in an inflated market.

What Happens During an Appraisal?

The appraiser will:

• Visit the Property: Assess the size, condition, location, and features of the home.

• Compare Comps: Review recent sales of similar homes in the area.

• Evaluate Market Trends: Analyze current real estate market conditions.

Potential Outcomes

• Value Matches the Offer: Everything proceeds smoothly.

• Value is Lower Than the Offer: You may need to renegotiate the price, bring additional funds to closing, or dispute the appraisal.

How Your Realtor Helps

Your agent plays a key role in managing the appraisal process by:

• Providing the appraiser with relevant comps and property details.

• Guiding you on next steps if the appraisal comes in low.

• Advocating for you during any disputes.

Let’s Make It Happen

Appraisals are an essential step in the home-buying process, and I’ll be with you every step of the way. Contact me today to learn more about how I can help you navigate this process with ease.