![]() “Just because it doesn’t meet the number you need to get the mortgage doesn’t mean it’s wrong,” Miller explains. So what happens if your home appraisal comes in lower than the amount you just agreed to pay for your new home? First, take a deep breath and try to understand the assessment. “Appraisers are human beings - so some may think a messy home implies that other significant issues that impact home value are neglected.” So get out your broom, take out the trash, and tidy up, and you’ll be in a much better position. In other words, clean up! “You want your home to look its best,” advises Jonathan Miller, President and CEO of NYC-based real estate appraisal and consulting firm Miller Samuel Inc. Here a pro tip: treat your refinancing appraisal appointment like you’re getting ready for houseguests. To refinance your mortgage, you’ll likely need another home appraisal to reassess your property’s value. How much is your NYC home worth? GET STREETEASY VALUATION What You Should Know If You’re Refinancing Your Home Second, the appraiser compares the property at hand to similar, comparable properties (also called “comps”) that have recently sold, and makes price adjustments for differences like renovations, extra storage space, views, and the like. ![]() First, there are the property’s physical attributes, including size, location, and condition, which an appraiser can evaluate during an inspection. There are two major processes that a home appraiser uses to create a valuation. You can expect to pay anywhere from a few hundred dollars to a couple of thousand. You may be wondering, who performs the home appraisal? Typically the lender sends a non-biased, third-party appraiser to evaluate the property at your expense, as part of your closing costs. ![]() If a foreclosure occurs and the property gets sold off, the lender theoretically gets all its money back. Essentially, it’s how the lender protects itself if the borrower were to stop making their mortgage payments. In a nutshell, the home appraisal ensures that the property is worth the purchase price. The mortgage lender needs this information to underwrite a loan, because the property’s value acts as collateral for the loan. In real estate, a home appraisal assesses a property’s value at a specific point in time.
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