Home appraisals are often an integral part of real estate transactions. As a buyer, your lender will likely request one before finalizing the loan. However, you also stand to benefit from an appraisal because it helps you make an informed decision when it comes to making an offer. Here’s more on why appraising a home is vital and how it can affect your purchase.

What Is a Home Appraisal?

This is an impartial, professional assessment of a property’s worth or its fair market value in real estate transactions. An appraisal is normally based on a visual inspection of the home’s condition and on comparable sales in the market and neighborhood.

Lenders use an appraisal to determine whether or not they are making a worthwhile investment. For instance, if the sales price of a home is higher than its actual market value and the buyer fails to repay the debt, it won’t be possible for the lender to cover the loan they released even if they manage to sell the property. With a home appraisal, lenders will be able to avoid this scenario.

Why Is an Appraisal Important?

An appraisal not only secures your financing and helps you succeed in your real estate transaction, but it also prevents you from paying more than what the home is worth. You will be protected from over-borrowing and incurring a big loss in the event that you experience financial troubles and have to sell the house.

If you didn’t have a home appraisal and bought the property for a lot more than its actual value, your finances could be in jeopardy. Additionally, property values won’t be able to increase beyond reasonable limits with home appraisals in place. 

How Can Appraisal Findings Affect Your Offer?

An appraisal can become a negotiation tool if you’re looking to buy a home. You will be in a better position as you work out the price because you are already aware of the home’s market value. In other words, you can be confident in giving an offer or convincing the seller to set a lower price if you know your proposal is fair.

You and the seller likely want the real estate transaction to be successful, so it won’t be difficult to reach an agreement with the appraisal findings in your possession.

If you want a top real estate attorney to represent your best interests, turn to Bernardini Law P.C. in North Andover, MA. Attorney Christine Bernardini and her outstanding team will provide you with high-quality legal services you deserve when it comes to real estate transactions, closings, sales agreements, power of attorney, and other real estate services. Call (978) 794-5525 to schedule an appointment or visit their website to get in touch with them online.