A Crucial Concept Home Buyers Need to Know
Tuesday Jan 17th, 2023
Today, I am discussing something that you absolutely need to know…
Otherwise, there are possibilities you’d end up closing the deal that you should not.
So, it’s critical for you or any home buyer to understand this concept…
I’m talking about home appraisal…
An appraisal is an unbiased professional opinion from a professional appraiser about the value of a home…
… and is used whenever a mortgage is involved in the buying, refinancing, or selling of that property.
It is used to determine whether the value of home is appropriate – given the home condition, location and features.
It’s also important for lenders that the money they are handing to the borrowers should not be more than the home is worth. Otherwise, they could be in loss.
You must be thinking, what’s in it for me?
Here is how this info is important for you…
When you set forth to buy a home and are under contract, the appraisal will be the first step of the process.
If the appraisal comes in at or above the contract price, the transaction proceeds as planned.
However, If the appraisal comes in below the contract price, it can delay or derail the transaction.
The advantage for you is, if it is found to be a low appraisal, it can serve as a negotiation tool to convince the seller to reduce the price to the actual.
That way you’d only pay a price that is worth it…
Besides, it kills rejection that you’d otherwise face from the bank or lender, if you were unaware of the actual rates.
I know this concept could be tough to swallow, but an important one for the buyers and you shouldn’t bypass this at any cost.
Sade Sanni, Broker of Record.