Buying or selling a home is a very exciting moment in a person’s life. But amidst all of the emotion and anticipation that goes into the home-buying/selling process, there are also numerous legal processes to navigate. One such legal process is that of a home appraisal. At Allstate Appraisal, we can handle your Indianapolis home appraisal valuation and answer any questions that you have about the process along the way. Reach out to us by phone or online to learn more about our professionals and our services.
A home appraisal is the official process of determining the fair market value of a home. Understanding the fair market value of a home is important for numerous reasons, including securing a mortgage and determining property taxes. What’s more, nearly all mortgage lenders require an appraisal before issuing a loan.
If you are buying or selling a home, a home appraisal will certainly be part of the process. Again, lenders want to see that they are issuing a loan that is aligned with the actual value of the property. Usually, the home appraisal is paid for by the buyer; however, this is something that can be negotiated in the purchase agreement.
In addition to needing a home appraisal when you’re buying a home, you may also need a home appraisal if you are refinancing your current mortgage. Again, before a lender makes any decisions or approves a loan/refinance agreement, it will want to know the official appraisal value of a property.
While there are certain things that a homeowner can do to improve the value of their home, such as renovations and upgrades, there are many factors that are out of the homeowner’s control, such as market trends. Here are a few things that will impact the value of a home appraisal—
Consider a situation in which a seller lists a home at a certain price and they and the buyer enter a purchase agreement based on that price, but the home appraisal comes in well over or under that amount. What happens?
It’s very common for an appraisal contingency to be part of a purchase agreement. This contingency states that a buyer can walk away from the deal if the appraisal comes in under the sale price—so low that the sale price isn’t justified. If the home appraisal comes in higher than the asking price, the buyer is in a good position, as it means that the buyer will pay the seller less than the home’s actual value.
If you are buying or selling a home or are refinancing your mortgage and need an Indianapolis home appraisal valuation, please reach out to our professionals at Allstate Appraisal directly today.
If you have a question or would like to place an order for an Appraisal or Review, please fill out the form below. Once you’ve submitted your order, someone from our office will contact you within 1 business day to confirm your order or answer any questions.