We are living in an information age, where the answers to nearly every question are just a click away. Problems find solutions, mysteries are solved, and the world seems to spin at a faster rate, but how do we verify the information is correct?
With 90% of consumers beginning their home search online, virtually anyone can make a fairly well educated guess on what the value of their home is. Sellers can explore similar homes with similar features, and cross reference those with listings in their neighbourhood to see what buyers are looking for, and how much they are willing to pay. As a buyer, this leaves you wondering whether or not you are paying a fair price for your dream home. Fortunately, there are professionals who conduct Home Appraisals giving everyone involved in the transaction piece of mind.
The Home Appraisal provides buyers with a market value of the home based on several factors including the location of the property, age of the home, current condition and more. A home appraisal generally costs between $300-$400 and along with providing security to all parties involved, it is also used to satisfy mortgage requirements.
Mortgage financing companies want to know the value of the property they are providing a loan for, should the buyer not be able to pay their mortgage. By getting a home appraisal, all parties can feel secure in the sale with the knowledge that they are making a good investment and receiving a fair arrangement.
A Home Appraisal is not to be confused with a Current Market Assessment (CMA). Typically a CMA is provided by your local real estate agent during the listing process and is complimentary. This report assists with determining the asking price of the home, using current housing market information such as supply and demand, seasonality and home information like location, age, square footage and more.
Although both reports are similar in nature and use relatively the same set of criteria, a CMA is ultimately determined by what current buyers are willing to pay for the home, in a range acceptable to the seller. A Home Appraisal is based strictly on the physical attributes of the home.
Ensure you are prepared and ready for anything in your home buying journey by learning more about the Hidden Costs of Home Ownership. Are you interested in getting a Current Market Assessment on your home? Connect with us today to get started.