A home appraisal is a fundamental component of any successful real estate sales transaction. It is required when selling a home, buying a property using a mortgage, and refinancing your existing mortgage. As a home buyer or seller, you’ll have a huge advantage if you understand how the process works.

Residents in Pukalani, HI, can count on Classic Maui Properties to help them with real estate sales. Led by certified appraiser Steve Parker, the company specializes in appraisal and property management. They handle everything from rental agreements to arranging maintenance.

Below, they explain why a home appraisal is so imperative in real estate sales:

• Selling The Property: A home appraisal gives the seller an unbiased assessment of his property’s value so he can come up with an appropriate listing price. Real estate agents will need a certified appraiser’s help, particularly if the home has some unique attributes. Then, using the appraisal as a basis, the price may be adjusted to reflect the property’s value correctly.

• Purchasing A Home: Buyers that need a loan to purchase a home will need a professional appraisal. Lenders will want to know the real value of the property, independent of its listing. If the appraisal comes in at or above the contract price, both parties can proceed to the closing process.

• Refinancing A Mortgage: Lenders often require a professional appraisal as part of a refinancing process. This step is taken to make sure that the collateral value matches the loan amount requested. To be approved, the value of the property must be at or above the amount requested.  

• Canceling The PMI: Private mortgage insurance can be expensive, but it can be removed when you meet the 20% equity threshold. If you’ve made home improvements, have the property appraised to increase your equity. Some lenders will consider a new appraisal instead of the original sales price.

Those who need help with real estate sales or property rentals can trust the team at Classic Maui Properties. Call them at (808) 878-1001 to book an appointment or visit their website for more information.