What Home Buyers Should Know About Appraisals

by Eric Lindlau 12/29/2019

Home appraisals are an important part of the buying and selling process. Lenders use appraisals to make sure that the home is worth what the borrower is paying. A home’s appraisal value is based on a number of factors, all of which we’ll discuss in this post.

Whether you’re a buyer, seller, or are just learning about the process of buying a home so you’ll be better equipped in the future, this article is for you.

How is a home appraisal different from an inspection?

While home appraisals and inspections are performed by licensed or certified professionals, they have to different functions. An inspection ensures the safety of a home, as well as whether or not it will need repairs in the immediate or near future.

Appraisals, on the other hand, aim to value a home based on its property value, the size of the property, and the location of the property. The condition of the home is a factor in valuing a home, which is why some people confused appraisals with inspections.

Who pays for appraisals?

Like most closing costs, a home appraisal is a burden that falls on the buyer. Typically, the lender you choose will work with will actually order the appraisal. The cost, which usually amounts to a few hundred dollars, can be added to your closing fees. You can find the cost for an appraisal listed on the Closing Disclosure document provided by your chosen lender.

Which factors determine the home’s value?

To appraise the house itself, appraisers will look at the condition of the home. They’ll also weigh the features of the home in their valuation--things like the number of bedrooms and bathrooms, for example.

However, the two key characteristics of a home that contribute to its value are its age and size.

Which external factors contribute to the home’s value?

As you might suspect, the location of your home matters greatly when it comes to appraisals. Homes are appraised based off of average prices for their neighborhood and region.

Other location factors include how accessible the home is, if it’s located on a waterfront, and whether it has desirable views.

When does a home get appraised?

While your experience may vary based on your specific circumstances, most appraisals occur after a buyer has signed a purchase contract. One this is done, the lender will take the steps necessary to order and process the appraisal.

How long is the home appraisal process?

Once the buyer has signed a purchase contract, the appraisal is usually completed and processed within 7 days. The appraisal report will be sent to the lender. This report contains the appraised value of the home. Buyers are entitled to a copy of this report, and should keep one for their own records.

About the Author
Author

Eric Lindlau

 

About ERIC LINDLAU

My Client-First Philosophy

There are many qualities and skills that go into being an excellent real estate professional - integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills and a high-quality professional network, all of which are hallmarks of how I work.

That said, in my experience as a COVENTRY real estate professional, I've also found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to your needs.

This "client first" philosophy has always been my approach and it requires me to continually improve my skills and ways of doing business. In addition, I've found that the latest technologies are enabling me to do everything I've always done, only much more quickly and efficiently. They've also helped me to extend the range of services I provide to my clients.

So when you decide that you'd like to buy or sell a home in the COVENTRY areas, please contact me.

*****Highly likely to recommend

05/11/2017 - lisal campbell13

Sold a Single Family home in 2017 in Coventry, CT.

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I am a 70 yr old recent widow who needed to reluctantly sell our house alone for the first time. Eric Lindlau, owner of Lindlau Realty, was the perfect choice for me. He explained in detail the entire process answering all my questions. He was sensitive to my emotional state, kind and helpful in every way. He even assisted me when I accidentally locked myself out of the house! He emailed me selling prices of comparable houses, which helped me understand realistic values in our living area. I highly recommend this personable young man for your real estate needs.

*****Highly likely to recommend

01/18/2017 - soxgirl13109

Bought a Single Family home in 2016 in Coventry, CT.

  • Local knowledge: *****
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Eric was GREAT to work with!! He was a dual agent for us and the home seller. When any challenges arose he knew how to handle them with poise. He was in communication with us throughout the entire process. I would recommend him for all of your real estate dealings.

*****Highly likely to recommend

01/09/2017 - laurak777

Bought a home in 2016.

  • Local knowledge: ****
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  • Negotiation skills: ****

Eric was an amazing person to work with. He helped me through a somewhat difficult purchase that had lots of unexpected bumps. Eric always returned my phone calls and emails promptly and was above all...honest!!! So many times when you are dealing with folks who make their living on commission, you feel like they are trying to "sell" you all the time. That was never the case with Eric. He was a complete professional and nice guy. I enjoyed working with him so much that he is now representing me in another sale.

*****Highly likely to recommend

12/07/2016 - kclancy098

Bought a Single Family home in 2016 in Coventry, CT.

  • Local knowledge: *****
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  • Negotiation skills: *****

Eric was always so willing to work with our schedules and he took the time over 3 months to show us over 20 houses. He was very knowledgeable and would give us his honest opinion. He always gave us great and honest advice but would still do whatever we asked of him. He found us such a good deal and when we thought we were extremely annoying or need to he was always pleasant and willing to help however.

*****Highly likely to recommend

09/15/2016 - DarleneWalworth Suchecki

Sold a Single Family home in 2016 in Coventry, CT.

  • Local knowledge: *****
  • Process expertise: *****
  • Responsiveness: *****
  • Negotiation skills: *****

Mr. Lindlau is an extremely knowledgeable and professional real estate agent. He made the whole home selling experience easier and I had complete trust in him. His negotiating skills were wonderful because he is such a great people person. I guarantee that you will not be disappointed if you choose Eric Lindlau for your Realtor.