Professional appraisers use different methods to establish the fair market value of a home. A common method is to compare the home in question with similar ones that have recently been sold in the area. This method, known as appraisal property valuation, relies on data from recent real estate transactions to determine the price buyers are willing to pay for similar properties.
Professional appraisers will also consider factors such as location, condition, and amenities when determining a home’s fair market value. Ultimately, an appraiser’s assigned value is based on her professional opinion and should be used as a guide when making decisions about financing and purchasing a home.
The appraisal is based on establishing the fair market value of your home.
This means evaluating square footage, important home features like garages, bathtubs, number of bedrooms, and lot size, and then comparing your home to properties sold in the area. Obviously, it is much better if the price of your house is higher than the price you are buying. If the appraisal doesn’t meet your lender’s standards, the bank will only lend you what the appraisal says the property you want to buy is worth.
In some cases the price can be renegotiated with the seller, but in many cases not. One way to make sure you don’t lose your deposit is to make a note in the purchase and sale agreement that you can withdraw from the agreement if the house doesn’t appraise properly.
How much does a property appraisal cost?
A professional property appraisal typically costs between $400 and $1,000. The cost will depend on the type of property, its size and other factors. It is the buyer’s responsibility to pay the appraisal. An appraisal is important in determining the fair market value of a property. This can be helpful in negotiating the purchase price of a home or other type of property.
