You may believe that once a home buyer and a home seller agree on a final price, the transaction is complete, but that’s not true. A lot has to be done before the sale can be officially closed, and one step in the process is getting an appraisal.
The only time an appraisal is not required is when you’re selling to cash home buyers in Pensacola. In pretty much every other instance, you’ll need an appraiser to come in and determine your home’s value. Here’s more on how an appraisal works:
When An Appraisal Will Take Place
Typically, an appraisal is conducted soon after both parties reach an agreement regarding price. Things are handled promptly so the appraiser has plenty of time to create a detailed report. If a buyer is taking out a mortgage to finance the purchase, the lender will require an appraisal; the lender’s appraiser and the seller will determine when the best time for an appraisal is.
Inspection
The home’s interior and exterior are both inspected by the appraiser to determine whether the structure is sound. They’ll also look for safety concerns, document how many rooms there are, and determine whether or not major upgrades have been made recently.
During the walk-through, an appraiser will take pictures of the home’s components. Of course the homeowner may be present during this visit, but an appraiser can conduct their work alone.
Research
How much comparable homes in the local area sold for recently will in part determine how much your home is worth. The appraiser will look at government records as well as information from the MLS to see what nearby, comparable homes sold for recently. The appraiser won’t compare your home to properties which lack similar features.
Valuation Strategy
The appraiser may determine that the sales-comparison approach is the best strategy for determining value, or they may choose to use a cost-based strategy. This latter strategy involves estimating the cost of the home’s construction (if it were to happen today) and then adding the land’s value.
What Is The Price Of A Home Appraisal (And Who Pays)?
An appraisal can cost anywhere from $600 to $2,000. A single-family appraisal costs less than a multifamily one, of course. Since the vast majority of lenders demand an appraisal before writing a mortgage, buyers are usually responsible for paying appraisers, but this isn’t always how things happen. The cost of an appraisal depends on the home’ size, where it’s located, how much work was needed to write the report, and other factors.
Bottom Line If at this point you don’t want anything to do with a home appraisal, don’t worry—you have options! Just contact Greg Buys Houses. We buy houses in Pensacola, and we help individuals who are facing tough financial circumstances sell quickly and for cash. There’s no appraisal, no inspection, no closing costs, and no realtor commissions when you sell to us.
