St George Real Estate » appraisal

How To Determine Property Value

realtor.com — Fri, 26 Feb 2010 14:00:55 +0000

Determining the value of home can be a difficult task for a buyer. Just as there are many factors that can impact a home’s value, the details and potential success of your offer also rely on several pieces of information. If you are thinking about buying a home, you may want to consider the following tips to gain a better understanding of property values.

By utilizing these recommendations and discussing the findings with your agent, you might be able to not only find the best house for your money, but also a home that surpasses all of your expectations.

Omar Arocho blogs about some factors you should take into consideration when determining the value of a house, and what your offer might be.

“When searching for a new home, many prospective homebuyers start by checking local listings. After the search is narrowed down to a few neighborhoods of interest, walking or driving through these areas can give you a better idea of overall neighborhood quality.

After you have compared the list prices of the homes you are interested in with other homes that have sold in the area, there are a few assessments of value you may want to consider. The most telling estimate of a home’s value will be a professional inspection.”

The more information you can gather about a home and it’s surrounding neighborhood, and the more you take that information into account, the better you will be able to prevent potentially overbidding or underbidding on that home of your dreams.

Click through now to read Omar Arocho’s blog.

Appraisal Affecting Mortgage: Ask a REALTOR®

realtor.com — Mon, 02 Nov 2009 20:15:01 +0000

We have a contract on our house for $365,000 and our buyers are borrowing $325,000. We are concerned that our house won’t appraise for $365,000.With the way the market is going, we’re thinking that it might come in a little lower. I know that it will appraise for more than what the buyers are borrowing, but if it comes in lower that the asking price, does it affect the buyers getting their mortgage?

-Jennifer

Yes, it is most likely that the property will need to appraise at (or at least very near) the agreed upon contract price. Mortgages are conditioned on a specific loan-to-value ratio. In this case, it looks like the buyers will have about a 10% down payment and will therefore be financing about 90% of the value of the property.

It is extremely likely that their loan cannot exceed this 90% threshold. If the property does not appraise for the sale’s price, your real estate contract should specify what protocols come into play. It is possible you will need to renegotiate the sales price of the home.

Ian Macmillan is a REALTOR with Windermer Realty in Seattle, WA.

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Setting Purchase Price After Appraisal: Ask a REALTOR®

realtor.com — Mon, 26 Oct 2009 23:00:20 +0000

We have a contract on our house for $365,000 and our buyers are borrowing $325,000. We are concerned that our house won’t appraise for $365,000. With the way the market is going, we’re thinking that it might come in a little lower. I know that it will appraise for more than what the buyers are borrowing, but if it comes in lower that the asking price, does it affect the buyers getting their mortgage?

-Jennifer

Yes, it is most likely that the property will need to appraise at (or at least very near) the agreed upon contract price. Mortgages are conditioned on a specific loan-to-value ratio.

In this case, it looks like the buyers will have about a 10% down payment and will therefore be financing about 90% of the value of the property. It is extremely likely that their loan cannot exceed this 90% threshold. If the property does not appraise for the sales price, your real estate contract should specify what protocols come into play. It is possible you will need to renegotiate the sales price of the home.

Ian MacMillan is a REALTOR® for Windermere Real Estate Company in the Greater Seattle Area.

Are you interested in having a qualified REALTOR® answer your questions? Click through to Ask a REALTOR® now.

Are you a REALTOR® who would like to answer buyer and seller questions? Click through to become an Ask a REALTOR® participant.