The home appraisal process works for both sellers and buyers and can make a major difference when it comes to finalizing a deal or a purchase. Mortgage lenders prefer dispersing a loan to buyers that have had their prospective home appraised for a sale price estimate. For sellers, the home appraisal process will ensure that you’re receiving the most value when the listing price goes public. The following article will provide some details as to how the home appraisal process operates:
Who Performs House Appraisals?
Home appraisals are performed by highly experienced home inspectors that have received comprehensive training, as well as necessary certifications & licenses needed to enter a home and grade it objectively. Home appraisers will provide detailed documentation as to how they came to their assessments.
What Do Home Appraisers Look For?
Home appraisers are inspecting your home and identifying permanent fixtures that need to either be upgraded or replaced. They won’t enter anyone’s home and judge the homeowner’s choice of furniture, interior colour scheme or even how many dirty dishes they have in the sink. Appraisers want to give prospective buyers a good idea about the age of a home, how large the property is, how many bathrooms and bedrooms there are. As well as any structural or foundational issues that need to be addressed. Here are some examples:
- A home appraiser will not enter a home and make a judgement on unmade beds or a burnt-out lightbulb, however, they will be checking walls and ceilings for cracks and water stains. Additionally, appraisers will inspect carpets and look out for pungent odours.
- Most home appraisers will use increments of about $500 to assess a certain issue. For example, if there are noticeable condensation spots or cracks in some of a home’s windows, it would undoubtedly cost more than $500. Therefore, homeowners should make the economical choice to upgrade them, so appraisers don’t take value away from their home.
- Curb appeal plays a major role in the appraisal of a home. For example, if a garage door is broken or dented, or if the front lawn and gardening are unkempt, the value of your home may suffer.
Why Mortgage Lenders Recommend Home Appraisals
Due to the unbiased and objective job that home appraisers perform, mortgage lenders like to ensure that a mortgage they offer is protected. If a home’s market value is significantly lower than the sales price and the buyer defaults on his or her mortgage, then the mortgage lender will be unable to sell the home and regain their initial investment.
For more information on the home appraisal process, contact Mortgage Forces today!