Rona has an interesting post on the crazy appraisal market out there. But there seems to be one missing component in the final analysis: Sellers who have overly high expectations about prices.
Whether as a buyer, seller, or appraiser, what are you seeing out there in the appraisal market? It seems to be a little chaotic these days.
Filed under: Advanced astrology
A home appraisal is the estimated value of a property based on the condition and location of the property, plus comparable sales and market trends. It’s performed by a licensed Boston appraiser. Why do you need one? There are several reasons why an appraisal is necessary, and we discuss the top five below. We’ll also answer some FAQs about the process and what you can expect.
WHEN DO YOU NEED A HOME APPRAISAL?
A Boston condominium appraisal is a term frequently used in the home buying process. Home appraisals are primarily performed at the request of a mortgage lender. All lenders require an appraisal during the loan lending process as an objective way to assess the home’s market value and ensure that the amount of money requested by the borrower is appropriate. In a nutshell: when you’re buying a home in downtown Boston, banks want to protect their investment should a buyer default on their mortgage. If the actual market value of a property is lower than the sales price, the lender won’t be able to sell the property for enough money to cover the loan.
Receiving your property tax bill in the mail is always an anxiety-inducing moment. Property taxes and your home’s appraised value go hand-in-hand. The higher the assessed value of your house, the higher the property taxes. If you believe your property tax bill is too high, you can formally appeal your property tax bill with the Appraisal Review Board.
Many homeowners consider having their home independently appraised, which could help strengthen their case during the appeals process.
Thinking of refinancing your mortgage? Because market conditions change rapidly and property values in your neighborhood might be much higher (or lower) than when you bought your home, you need to have your property’s value appraised when refinancing. The results of your home appraisal will determine your ability to qualify for the new loan you want. Ideally, you’ll want to receive an appraisal value that’s higher than the total refinance amount. Unfortunately, an appraisal can come back low, which can negatively impact your refinancing plans.
The Federal Trade Association defines a home equity loan as a loan for a fixed amount of money that’s secured by your home. You repay the loan with equal monthly payments over a fixed term, just like your original mortgage. If you don’t repay the loan as agreed, your lender can foreclose on your home. The actual amount of the loan also depends on your income, credit history, and the market value of your home. Similar to mortgage loans, a lender requires a home appraisal for home equity loans to protect itself from the risk of default.
- The general condition of the home’s interior and exterior, size of gross living area, number of bedrooms and bathrooms, signs of any obvious damage, any improvements or additions that enhance – or detract — from the home’s value.
- data of similar homes that have recently sold in the same area.
- of additional market data (neighborhood, local amenities, accessibility to transportation, schools, etc.)
This depends on the size and details of the property. It’s estimated to take anywhere from 30 minutes to 3 hours.
When it’s a home sale, the buyer of the property is responsible for paying the cost of an appraisal; it’s typically paid at closing as part of the closing costs. If you’re looking to refinance, applying for a home equity loan, or seeking the expertise of an appraiser when appealing your property taxes, you, as the homeowner pays for the appraisal.
Do you have questions about a home appraisal or the process? Reach out to connect with one of our experienced agents.