Written By: Vikki Head, Sales Manager
First of all, it might be helpful for some to know what an ‘appraisal’ is because in Real Estate situations that term is thrown around a lot and it can actually be referring to different things. Allow me to explain: a buyer’s lender will usually require an appraisal to be done on the property the buyer is purchasing (this is done to verify the value that the lender is allowing the buyer to purchase the home for). So that appraiser works for the buyer’s lender and will go out and appraise (give a value for) the property. This is very different from a home inspection which is normally optional and paid for by the buyer to assess the condition (not value) of the home. Then, there is also something called a tax appraisal which is where your local taxation entity will assess the value of the home for tax purposes.
Back to the lender required appraisal….
This is normally the last major step that must be done before a buyer can close on a home. Depending on the type of loan a purchaser has, there are different requirements that need to be met for appraisals. For Example, FHA, VA, or government-backed loans have stricter guidelines for safety and hazardous issues relating to a property. That means that the appraisal can tell the lender that certain repairs must be done before they can approve/submit the appraisal (things even as seemingly minor as peeling paint, or broken fence pickets) and then they have to go back out for a follow-up appraisal appointment to take pictures and make sure all repairs were indeed completed.
This is ultimately a good thing. The lender wants to make sure the home is in good condition and also that the value is worth the amount of loan they are giving the borrower (buyer) to purchase it. It can be frustrating and a difficult process though, which is why we advise you have a Realtor who knows the process and will work hard to make sure you get through it smoothly. That is where we come in – At BHHS Stovall Realtors, our job is to get you through all the ups and downs of Real Estate and get you the most money with the smoothest transaction. We strive hard to uphold our mission to be the standard of professionalism in Abilene real estate and we want you to trust us with your home buying and selling needs! Call us today at 325-691-1410.