One of the most important tasks before closing a home transaction is obtaining a home appraisal. Getting one is often included in the closing checklist, but a low appraisal value can cause the transaction to be delayed or even canceled altogether. Understanding the process can help you avoid the problems that come along with low appraisal values. Read on to discover 3 Reasons to Get a Home Appraisal. You may also be interested in the following articles:
A good appraiser will look for signs of water damage when evaluating a home. Minor water problems like leaks and water stains on walls and ceilings may not negatively impact the value of your home, but extensive damage will require expensive repairs. Also, water damage can lead to mold growth, which can be hazardous for occupants. The repair bill could cost thousands of dollars. If you want to sell your home, you need to take the necessary steps to prevent mold growth.
Termites are small, but incredibly destructive. They destroy wooden structures quickly. They can take just a few months to destroy a home, so it is vital to have your home inspected for any signs of termite activity. Also, termites can be difficult to detect because they have no visible wings. As their name implies, termites live in the dark and use their antennae to search for food.
Age of home
The effective age of a home can affect the value of a property in two ways. The actual age of the property is the effective age divided by its total economic life, which is how long the structure will add value above the land value. Then the age-life factor is applied to the replacement cost to calculate physical depreciation. The age-life factor takes into account two factors that affect value: wear and tear and external factors.
The comps you use to get a home appraisal should be similar to your own home. The comps you use should have similar floor plans and be similar to yours in size. They should also have similar number of bedrooms and bathrooms. When deciding on the comps, it’s helpful to know the condition of the homes and their features. In general, homes built around the same time and location will be more comparable. In addition, comps should be similar in proximity to schools, parks, and public transportation.
Refinancing a home requires a home appraisal. The lender uses the appraisal to determine the value of the home to justify granting a new mortgage. However, there are several potential pitfalls associated with a low appraisal. A lender may delay the refinance process if the borrower decides to challenge the appraisal. Nevertheless, it is possible to work through these problems.
Getting a home appraisal is important because your appraisal might be less than what you want to sell your house for. This will leave you no wiggle room when negotiating the selling price. However, you should also consider that home appraisals are subject to subjective evaluation and differ widely from one appraiser to another. In addition, the validity of an appraisal can range from 120 to 180 days.
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