So you’ve found a piece of real estate that you like and put in a good offer. Sound like the deal is about to go through, right? – Wrong! The home appraisal process has just begun. Having your offer accepted doesn’t take you across the finish line just yet. There’s still a lot of things that you need to look into and understand. It’s best to talk to your real estate agent Myrtle Beach about this and dig into the details.
Your prospect home still needs to go through a comprehensive appraisal even after you’ve applied for a mortgage. If the appraisal isn’t favorable, that could spell the end for the deal. It isn’t the most pleasant experience. You should always get to know the process so you would know what to expect. Read on and we’ll demystify what goes behind home appraisal.
Lenders are in it too!
So, you and the seller have settled on a price. Does this mean the deal is closed? Is it already a done deal? Unfortunately, it’s not quite over yet. It’s only just starting. The lenders will be appraising the value of the property too. When you’re buying a home, you’re not only dealing with one or two entities. You’ll be doing transactions with a number of people before everything will be finished. Lenders are among them. After all, your investment is theirs as well. For you to be able to get a mortgage, the lenders must appraise the value of the home. The property will serve as collateral. If you don’t manage to pay your mortgage, the property will be foreclosed and will be sold to get their money back plus interest.
Appraisers are on the lender’s side, not yours
In the process of buying a home, you’ll the paying for the appraisal of the property of your choice. The appraisal process will set you back anywhere from $300 to $400. However, paying any amount does not mean that you’ll get special favors from the appraiser and get a lower appraisal for the home. Nobody is allowed to put any pressure on the appraisers just to get to a certain mark. In fact, it is illegal to do so.
Home appraisal adds protection to the buyer
You read that right. Although appraisers will not help you get a home for the price that you want, they will give you the protection that you need. Home appraisal isn’t only there to give clear value to your prospect home, it’s also a way for you not to end up with a bad deal. For example, the agreed amount between you and the seller is $125,000. However, the appraisal came in at just $105,000. That leaves a $20,000 deficit.
There are a couple of things that buyers can do at this point. Do note that appraisals coming in low isn’t a bad thing – at least not entirely. Here are the steps that a buyer could take:
• The buyer could walk away from the deal and find another property
• Continue with the deal by coming up with the difference or have the seller cover it
• Get a second opinion from another appraiser (although this isn’t always the best option)
When you do seek another opinion, you need to consider that the results may still come in the same. Do make sure that you consult experts first. Talk with your real estate agent to know more about the process.
Give Full Potential Real Estate a call today and get the home of your dreams!
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577