A home appraisal is vital to securing a loan. It tells the mortgage lender how big of a loan you require to buy the house. For example, a seller sets the asking price of their home at $450,000. You make an offer of $435,000.
When you apply for the loan, you mention the amount in the application. The lender then contacts a home appraiser to inspect the house and determine its value. The home appraiser looks at the different features of the house and declares that it is worth $415,000.
Now, either your Orlando realtors will have to assist you with how to come up with the rest of the money or help you renegotiate the price and lower it to $215,000. The last option is that you come up with the remaining funds.
Keep in mind that a home appraisal is different from a home inspection. The former determines the house’s value, and the latter involves an inspection from top to bottom to find out if the house needs any repairs.
Now that you know what a home appraisal is about, let’s look at what factors are reviewed under it:
- Condition of the house (Any leak, cracks, damages, etc.)
- The property’s size
- Quality of landscaping
- Quality of foundation and roof
- Number of bathrooms, bedrooms, and other rooms
- Quality of plumbing and lighting
- Number of fireplaces
- Condition of the sprinkler system and swimming pool
- Quality of the finished or unfinished basement
- Any finishing details of the home, such as appliances, hardwood floors, granite countertops, and more
Top 4 Things a Home Appraiser Considers During the Process
The Home’s Location
The first factor determining the house’s value is where it is located. The home’s proximity to facilities like hospitals, schools, police stations, and fire stations matters the most. A few other factors include the crime rate in the area and how many houses are occupied in the neighborhood.
The Home’s Age
The age of the house is another factor that affects the appraisal value. For example, if the house is old, its price might be low due to old plumbing lines. However, this does not apply to all houses. If the property is located on historical ground, the price would be higher. Compared to new construction houses, an old or new house is priced lower.
The Home’s Garage
Apart from the bedrooms and bathrooms, a garage also raises the price of the house. For example, a garage that can fit 3 to 4 cars will be priced higher than a garage that can fit a single car.
Most sellers usually upgrade their house before selling it. Upgrades like eco-friendly design, energy-efficient appliances, fireplaces, and a deck in the backyard are expensive, allowing sellers to recoup the cost.
This is how a home appraisal helps you with the home buying process. Get in touch with a qualified Orlando realtor for your dream Orlando real estate by visiting Megan Dowdy Realty. For further information, call 407-509-9279.