Once you are under contract, the buyer’s lender will send out an appraiser to make sure the purchase price is in line with the property’s value.
Appraisals help guide mortgage terms.
The appraised value of a home is an important factor in the loan underwriting process. This report helps lenders figure out how much money may be borrowed to purchase the property and under what terms.
Appraised value is not a concrete number.
Appraisals provide a professional opinion of value, but they aren’t an exact science. Appraisals may differ quite a bit depending on when they’re done and who’s doing them. Changes in market conditions also can dramatically alter appraised value. In our Rochester, NY Real Estate Market, our values for the most part remain steady. However, the amount of inventory does have a direct impact on what homes are sold for.
Appraised value doesn’t represent the whole picture of home prices.
There are special considerations that appraised value doesn’t take into account, such as the need to sell rapidly.
Appraisers use data from the recent past.
In New York State, appraisers are tasked with finding 6 comparable properties that have sold in the past 6 months, preferably in a very close radius to the subject home.
There are uses for appraised value outside of the purchase process.
For selling purposes, appraisals are usually used to determine market value. Other appraisals are used to determine insurance value, replacement value, and assessed value for property tax purposes.
Our team is well versed in the appraisal guidelines, as our broker has served on her town’s annual tax assessment
review board for many years. If you have a question about any part of the appraisal process, please feel free to contact Sharon Quataert Realty today.
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