Whether you're buying or selling a house, a home appraisal should be part of the process. This evaluation gives sellers, buyers, and even the bank financing the deal vital information for negotiations. Here's what you need to know about the process and how it affects your real estate transaction.

A Guide to Home Appraisals

What's the process like?

Once the buyer and seller have worked out a deal, it'll go to the bank for approval. The bank will need assurances of the house's value before they agree to lend money to the buyer. To get that assurance, they'll order a home appraisal. The buyer usually pays for this service.

The appraiser will inspect the home, look at other homes in the area that have sold recently, and estimate the current market value of the building.

What does the appraiser look at?

The appraiser looks at the permanent external and internal features of the home. This includes the size of the house and yard, the age and condition of the home, the quality of the neighborhood, any upgrades to the building, and how well it's been maintained.

What's in the report?

When you receive your home appraisal, it will include answers to all of those questions about the home's features and assets. It'll also include an estimated value. While only the one paying for the appraisal usually receives the full report, the appraiser will report the value of the home back to the buyer, seller, and lender.

What happens next?

Your bank will use the information from the appraisal to approve or deny the mortgage. If the house is worth less than the price the buyer and seller have agreed on, the bank is less likely to finance the deal because the risk is greater for them. However, if the values are close, you can usually go ahead with the sale.

The professional real estate agents at The Justice Group in Oak Ridge, NC, offer skilled home appraisals to help buyers and sellers in Guilford County close the deal. With over 18 years of experience, they provide award-winning service and are committed to creating an easy, personalized experience. Call (336) 324-5716 or visit their website to get started.