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Today we are excited to talk to you all about appraisals. We’ll go over what they are, how they work, and how they affect the purchase of your home.
Every time you write a contract, there will be a clause in
there saying that a home has to appraise in order for the sale to go through. These
aren’t required with every type of financing, but definitely are for FHA and VA
loans.
If the home doesn’t appraise out to at least the value it was purchased for, you have the option to void the contract and/or negotiate the price down. An important thing to remember about appraisals is that they are one person’s opinion on the value.
There is math and there are formulas involved
in coming up with an appraised value, but there is some art to it as well. By
using comparable homes, an appraiser will determine whether your house is
priced fairly. If a new house sells the next day and it’s a more comparable
home to yours than another one was, your home will then probably appraise a
little differently.
Even though you’ve had a home inspection, the
appraisers have a responsibility to look for certain things and areas where
improvements can be made. Sometimes you might get a conditional
appraisal that says your home will appraise for x amount if you fix a certain
problem.
Hopefully this has been helpful to you. The appraisal
typically takes about 48 hours to come back after it has been completed, and
the lender will let you know when it comes in.
If you have any questions for us about appraisals, feel free to give us a call or send us an email. We can’t wait to hear from you!
