When do you need a home appraisal?
We know you’re probably curious about your home. However, a home appraisal is only really necessary when you’re buying or selling. If you’re considering refinancing, you may need a home appraisal as well.
Home appraisals are usually required for a mortgage. Lenders need to know the value of a home in order to approve it for a mortgage or refinance. They do this to ensure that the borrower isn’t borrowing more than the home is worth.
If you’re planning to sell your house and your appraisal comes in low, you’ll likely have to lower your price in order to sell the house.
How do I find out how much my house is worth?
How much does a home appraisal cost?
Single-family homes cost about $300-450 to appraise. This number can increase for larger houses, though. When a house is up for sale, the buyer is generally the one who pays for an appraisal.
Appraisal are done by licensed and certified appraisers. The appraiser should be familiar with the local area. In addition, home appraisers must be impartial toward the transaction.
What factors go into a home appraisal?
An appraisal that comes in lower than expected can delay or cancel a transaction.
Is a home appraisal different than a home inspection?
A home appraisal is the process of looking at a home’s features, analyzing it against comparable properties, and assigning it a fair market value. Home appraisers do the majority of their work in an office, where they compare features of a home with other nearby homes.
On the other hand, a home inspection’s purpose is to evaluate the condition of a home and note any possible concerns with its functionality or structure. An inspector will usually spend a few hours digging into the details of a home. They’ll check on everything from heating and cooling systems, to plumbing and electrical, roofing, insulation, foundation and structural issues, windows, and more. They will then inform the buyer of anything that needs to be fixed or replaced or any other concerns before the sale.
Wondering how selling your home will affect your financial future?
At Milestone Wealth Management, we’re here to help you make a plan for your future that you can feel confident about. We can’t appraise your home, but we’d love to talk about your future financial plans and your retirement years. We want to team up with you to help you reach the financial milestones that are most important for you.
Ready to get started? It’s easy. Just book a meeting today. We can’t wait to help you make wise financial decisions every step of the way.
This material is not intended to replace the advice of a qualified tax advisor, attorney, or accountant. Consultation with the appropriate professional should be done before any financial commitments regarding the issues related to the situations above are made.
