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Buying a Home? Here's the Ins and Outs of Home Appraisals
What You Should Know About Home Appraisals
A house appraisal is a key component of the home buying process, as it allows a mortgage lender to determine the value of the home. An appraisal is always required during the loan approval process, as the house serves as the collateral for the loan. The appraisal process is a detailed and unbiased professional opinion that determines the market value of the home. This appraisal is based on a wide variety of factors, such as the location of the home, square feet, number of bedrooms, number of bathrooms, and any types of exterior or interior improvements. Ultimately, all of these factors will be calculated into the value of your home and compared against other houses in the nearby area. As you are searching for available Augusta homes for sale, here are a few things to keep in mind about home appraisals during your home-buying journey.
How Much Does an Appraisal Cost?
The home buyer is always required to pay for the appraisal, and the costs typically range anywhere between $300 to $400. The appraisal process usually takes a few hours, and it is also your responsibility to schedule it. Once the appraisal process is finished, the report is automatically sent to the lender, and they are required to send you a copy of the report at least three days before your closing.
How Does the Appraiser Determine the Property Value?
The primary factor in determining the property value of a home is to compare it to similar properties within the area that has sold in the past 90 days. For example, a property with a well-manicured lawn in Augusta, Maine will have a much higher comparison value compared to other recently sold homes in the area that have poor landscaping design.
What Happens if the Sales Price is Higher Than the Appraisal?
The lender will most likely reduce the value of the loan to match the appraisal value. However, you do have a few options if the sales price is higher than the appraisal. You can try to renegotiate with the seller for a lesser price, or you can dispute the assessment. You can look over the house appraisal report to find any inaccuracies and getting in contact with your real estate agent can help you identify any similar comps in the area to improve a higher valuation. Of course, you are also free to walk away from the deal if the offer contract has a contingency that requires the value of the home to be at least at the selling price or higher.
Your Augusta Real Estate Pros
Sprague & Curtis is a real estate company in Augusta, Maine that has over 60 years of experience in the real estate industry. Our real estate agents have an in-depth knowledge of the region and can help you find the best available homes for sale. Our professionally trained realtors are always available to answer any of your questions and provide guidance throughout each stage of the home buying process. If you wish to learn more about our real estate services, feel free to contact us to schedule an appointment.