Appraisals: Why They Are Important

Typically a homebuyer wants to buy a home as cheap as they possibly can. I receive a lot of questions about appraisals and if they are worth purchasing. For those that don't know, an appraisal is the act of getting an estimate of value. In this case, the value of a home. Many are under the impression that an appraisal is only for the lenders benefit, but this isn't always the case. There are many benefits to get an appraisal whether you are purchasing a home cash or via mortgage.

An appraisal will make sure that you, as a buyer, are not overpaying for a home. This is the most common reason people get an appraisal. The appraisal protects a buyer and provides them with the correct value of the home. Purchasing a home is typically the biggest investment someone will make over the course of their life time. That being said, it is smart to make such a large purchase for the amount it is worth. Sellers have interest in selling their home for as much as they can. It is in the hands of the buyer to make sure the value they are asking for is supported by the market. This is the exact reason the bank gets an appraisal.

There are many other reasons why getting an appraisal will benefit a buyer. An appraisal will not only give you the market value of the home but it will also help you compare your home to the rest of the market. When an appraiser develops an opinion of value for a home, they compare it to the other houses around and on the market. If the home exhibits deficiencies, it can affect its value in a negative way. If you are going to sell the home again in the future, you may not be able to get what you paid because of these deficiencies.

If you have any other questions about appraisals feel free to reach out to me. Also if you or someone you know is looking to buy a home, I would love to help! Please contact me via email ermusleh@gmail.com or by phone 317-650-5898.