Whether you’re on the selling or buying end of a real estate transaction, you know there are several important parts of the process that need to happen before you sign those closing papers and celebrate. Here are some important things to remember about having your home appraised.
First, be sure you’re not confusing an appraisal with an inspection. In order to protect mortgage lenders, appraisers make sure that the price negotiated between the buyer and the seller is reasonable, and not more than the house is worth. An appraisal is only obligatory for buyers who are applying for mortgages with the Federal Housing Administration. For non-FHA loans, you are not required to have an appraisal. Any problems the appraiser finds with a home will be disclosed to the buyers, in order to protect the lender of the mortgage. Their job is to determine what the value of the house is, and to inform the lender of that value. An inspector, on the other hand, informs the buyer of any problems with the home.
When having your home appraised, remember that the appraiser is looking for things like leaky pipes or cracks in foundation, not your dirty laundry. Making sure that your home is in ship shape is never a bad idea though–and if you’re planning on moving, an extra vacuum job, or getting a head start on cleaning out that basement full of old boxes is never a bad idea.
I am a real estate expert and have extensive experience helping people in the area find the home they’ve been looking for. If you have questions about the area or specific properties, please be in touch! I would love to discuss them with you or show you around this beautiful part of California.