Does an Appraisal Have to Be Done When Buying a Home?
Are you planning on buying a home but are not sure if the home will have to go through appraisal or not?
In this article, we will break down the appraisal process so you will know what to expect from this important part of buying a home.
If You Plan on Financing a Home
The only time that an appraisal has to be done when buying a home is if the buyer is getting a mortgage loan to finance the home.
Every lender requires an appraisal because they want to know the market value for what the home is really worth so they can have confidence that the amount of money that the borrower requests for the mortgage loan is appropriate.
An appraiser is an individual, or company, who has completed the required coursework and or internship to become licensed as an appraiser in California, or where the home is being sold.
What’s great about appraisers is that they are objective about the property since they are a 3rd party so as a buyer you can have confidence that you’re going to receive an unbiased report about the home including any work that may need to be done in the house before it can be purchased.
A Real Estate appraisal can cost up to $400 and although most buyers typically pay for appraisal fees up front when the loan application is being filled out, you may also be able to arrange to have the appraisal fees paid at the time of closing.
If You Plan on Paying All Cash for A Home
Planning on paying all cash for a home? If so, then you will not need to go through the appraisal process but you still may want to just so you can have confidence that price you are paying for the home is fair market value and not overpriced.
Contact Fred Sed Realty
For more information about Real Estate appraisals, or to view homes for sale in Southern California, contact Fred Sed Realty, today, by calling us at (800) 921-9231, connect with us online or through social media.