An appraisal is a common component of the home buying process. Traditionally, the service occurs after the two parties have entered into a contract. However, buyers also have the option to request a value assessment before they make an offer. If you're ready to buy a home, here's a closer look at how this approach may work for you.

A Guide to Pre-Offer Home Appraisals

What Are the Benefits?

The goal of an appraisal is to determine the market value of a home. After a contract is signed, the service mostly benefits the buyer's lender by ensuring that the loan amount isn't higher than the property's worth. However, when requesting the assessment before escrow, buyers can make a realistic offer on the home based on the estimated value. As a result, you avoid overpaying for your new home, and you also have the power to use the results when negotiating.

What's Involved?

Pre-contract real estate appraisals focus on the same aspects of the property as the in-contract service. The condition of the home is assessed, and specifications are taken, including square footage, number of bedrooms, and valuable upgrades. Additionally, the appraiser considers other contributing factors, like the local real estate market and recent property sales or foreclosures in the neighborhood.

The biggest issue you'll run into with an independent pre-purchase appraisal is the seller. Before an offer is made and both parties enter into a contract, there aren't any stipulations requiring the homeowner to allow an in-home evaluation. If the seller doesn't agree to the service, then the appraiser will utilize their resources to come up with a realistic estimate. This process often involves driving by the home to evaluate the exterior and neighborhood, which they combine with information from public records and the local market. Often times, if the property is listed for sale in the local Metrolist, the appraiser will be able to view the interior photos and be able to assess the upgrades and/or condition of the property based upon those photos – thus resulting in similar results.

Give yourself the upper hand in the home buying process by turning to Concept Appraisal Services – with significant market knowledge of the entire Denver Metro area. Since 2003, owner and operator Connie Jo Esbenson has provided dependable  residential appraisals for a variety of needs, including pre-purchase, pre-listing, and post-offer situations. Start your real estate journey today by requesting a quote online or calling (303) 506-6254.