DO I NEED TO GET AN APPRAISAL?

DO I NEED TO GET AN APPRAISAL?

 

Quite often I am asked by home buyers and sellers "do I need to get an appraisal?". My question is why do you think  you need one? If you are utilizing the services of a professional real estate agent they are going to provide a seller the market information to set the price. An agent representing the buyer will use the sales information to determine the offer price. 

Sometimes when there is no real estate agent involved one party or the other may be inclined to get an appraisal so they know the expected value of the property in question before they arrive at a sales agreement. For the home buyer doing so is wasted money if the intention is to get a home mortgage on the property. It may be useful information, but it will not be the appraisal a lender will use for their process.

When one seeks a home mortgage lenders will need an appraisal from one of their verified sources. They do not accept appraisals that are ordered by an interested party such as the home buyer or home seller. 

When I'm processing a home mortgage for a buyer they often ask if they need to get an appraisal because they don't know who is responsible for what in the transaction. When an appraisal is required (and it is not always) it is part of the costs quoted to the home buyer and who pays for it is part of the discussion.

Whether you  need an appraisal is something a mortgage loan officer will clarify in each situation but it is hardly ever something you will get yourself as a home buyer or seller.

Comment balloon 2 commentsDora Griffin • February 08 2018 04:02PM
DO I NEED TO GET AN APPRAISAL?
share
DO I NEED TO GET AN APPRAISAL? Quite often I am asked by home buyers and sellers "do I need to get an appraisal? ". My question is why do you think you need one? If you are utilizing the services of a professional real estate agent they… more
BEST TIME TO BUY OR SELL A HOME
share
BEST TIME TO BUY OR SELL A HOME After the year we experienced in 2017 what will 2018 look like? In the Northern Kentucky market 2017 saw a real shortage of inventory and prices much higher than we have experienced in some time. As a matter of fact… more
CO-SIGNING A HOME PURCHASE
share
CO-SIGNING A HOME PURCHASE Sometimes a home buyer wants to purchase a home before they have all the ingredients that would allow that purchase on their own. Generally speaking one needs to have stable income, be credit worthy, have a debt to income… more
PMI INSURANCE IS NOT A BAD THING
share
PMI INSURANCE IS NOT A BAD THING PMI Insurance (private mortgage insurance) is not a bad thing, always. Many home buyers don't really understand PMI insurance, the reason, the purpose. Often these home buyers just know they've heard it is a… more
ARE PROCEEDS FROM REAL ESTATE SALE TAXABLE?
share
ARE PROCEEDS FROM REAL ESTATE SALE TAXABLE? A fairly common question among sellers of real estate is whether they will owe taxes on proceeds of the sale of their home. Currently if a home owner has lived in the real estate as a primary residence… more
When You Buy A Home With Bad Neighbors
share
When You Buy A Home With Bad Neighbors You found the home you LOVE and are so excited about the newness of it all, then you move in and discover you have "bad neighbors". It happens, hopefully not a lot, but it can Having less than… more
SMALL BUSINESS SATURDAY NOV 25, 2017
share
SMALL BUSINESS SATURDAY NOV 25, 2017 SMALL BUSINESS SATURDAY FALLS ON NOVEMBER 25, 2017 THIS YEAR. This is the day consumers elect to buy from local small businesses as opposed to the big box stores or malls. I love buying local and do so… more
DO RELATIONSHIPS MATTER IN REAL ESTATE?
share
DO RELATIONSHIPS MATTER IN REAL ESTATE? I find myself today pondering whether relationships matter, particularly in real estate transactions. We professionals view real estate and home financing by nature as a relationship business because we get… more
I CAN'T IMAGINE DOING IT WITHOUT YOU.
share
I CAN'T IMAGINE DOING IT WITHOUT YOU. That is what I heard from a buyer I recently helped with a mortgage loan for his first time home purchase. All transactions make us feel really good when they are finished and our client is happy. We always… more
DOES YOUR HOME QUALIFY FOR AN APPRAISAL WAIVER?
share
DOES YOUR HOME QUALIFY FOR AN APPRAISAL WAIVER? What is an appraisal waiver?? An appraisal waiver is when the lender is not requiring an appraisal be done on your property before making a mortgage loan to you. Benefits of an appraisal waiver:… more