If you plan on buying or selling a home in California, you’ll eventually need to get an appraisal. During an appraisal, an expert will evaluate your home or property and give you an estimate on how much it is actually worth. You may be wondering how an appraisal can affect your chances of getting a home loan, or where to go to get an appraisal. Luckily, our experts are here to clear things up. At American Dream Realty, our real estate agents have helped hundreds of people find the home of their dreams through our innovative real estate services. If you need help navigating the California real estate market, contact one of our agents today!
What Is A Home Appraisal, Exactly?
Home appraisals are often conducted by experts who have been licensed by the state to assign value to a home. An appraisal acts as an unbiased estimate of the true value, or market value, of what a home or property is actually worth. If you plan on taking out a home loan to purchase a two-story house in Simi Valley, your lender will order an appraisal during the mortgage loan process so that there is an objective way to ensure the amount of money requested for the loan is appropriate. A home appraisal may include recent sales information of similar properties in the area, the current condition of the property, and the location of the property.
How Can An Appraisal Affect Your Home Loan?
When you’re looking to purchase a home, your appraisal can play a large role in determining if your lender will approve your loan. If your home appraisal comes in below the purchase price of the property, you may be required to pay the difference in cash or you may need to lower the purchase price of the house. Your appraisal can also affect your home loan during a refinance. Since your appraisal is used to help determine your loan-to-value (LTV) ratio, it can also play a big role in the interest rate you get.
At American Dream Realty, we’re proud to be a one-stop-shop operation, offering services for all of your mortgage and real estate needs. If you’re interested in purchasing a home, condominium or apartment in California, contact our real estate agents today!
When Does Someone Get An Appraisal?
When you start shopping for a California home, your mortgage lender will require an appraisal on the home you’re interested in buying before they will lend you any money. This helps the lender ensure that the property you’re looking to buy will be able to sell for at least the amount of money they are lending you. If the asking price of a home is much higher than your appraisal value, your lender will not feel comfortable loaning you the money to buy it. If you need to refinance your home in the future, your lender will also likely want an appraisal on your home as well.
What Do Appraisers Look For In A Home?
When an appraiser visits a home or property, they will look at a variety of things to determine its true value in the marketplace. They’ll examine the size of the home and property and the condition of it as well. If they notice any flaws to the building structure, such as a leaky roof or cracked foundation, they’ll take these things into consideration as well. An in-person appraisal normally takes over an hour to complete, depending on the size of the property. Once the appraiser has compiled a final report of the home’s value, they’ll be able to give the lender a thorough and complete property analysis. It will also outline how the appraiser calculated your home’s worth. Oftentimes, the appraisal report will cover the following things:
- The overall size, square footage, and condition of the property.
- Notes on any serious structural issues such as wet basements, cracked windows, and roofing that needs repair.
- Any details about past home renovations like updated kitchens, bathrooms, and flooring.
- Notes on all of the permanent fixtures inside the home. This can include ceiling lights, fans, and faucets.
- A detailed market analysis including the recent sales of comparable homes in your area.
Tips To Avoid A Low Real Estate Appraisal
If you’re trying to sell a home in California, you’ll need to get an appraisal of your home. While nobody wants to be stuck with a low appraisal, there are a few things homeowners can do to decrease their chances of getting a low appraisal value. At American Dream Realty, our real estate agents are well-versed in the real estate market, and we have a thorough understanding of what appraisers are looking for when it comes to evaluating the value of your home. Below is a list of things you can do to avoid a low real estate appraisal.
Clean Up Your Home
While this may seem like an obvious tip, make sure your home is clean and uncluttered before the appraiser visits. You can help make a positive impression on your appraiser by giving it a junk-free, sparkling appearance. Clean up any dirty dishes in the sink and make sure you don’t have dirty laundry laying around your living areas.
Repair What You Can
You don’t need to be a professional handyman to make minor repairs on your home. Your appraiser will make note of any small issues they find throughout the house, so it’s important to pay attention to small details that might otherwise be ignored. Are there missing boards in the fence around your property? Could your kitchen use a fresh coat of paint? These small repairs can make a big difference in the ultimate value of your home, so it’s best to tend to everything you can.
American Dream Realty is proud to be a leading provider of real estate services throughout California. If you’re interested in buying or selling a home, contact our professionals in Woodland Hills today. We’ll help you seamlessly navigate the homebuying and home selling process and our friendly agents are always willing to answer any questions you may have.