A seller and a buyer can strike a deal on the price of a home, but it’s far from a done deal if you’ve taken a loan to purchase the property. You need the appraiser to weigh in. A home appraisal is essentially a professional’s unbiased view of a home’s value. This process is required in every real estate transaction that requires a mortgage. This is because lenders—like banks or credit unions—need this information to verify that the amount they’re lending doesn’t surpass the property’s actual market value.
Let’s take a look at some of the common steps for an appraisal and learn how a realtor can help guide you through the process.
How Home Appraisals Work
So, what happens when a house goes through the appraisal process? It boils down to a few key aspects:
Property Size and Condition
First, the appraisers will examine the overall size, layout, and condition of the home. They’re keen to know how well the home has been maintained over the years.
Comparable Homes in the Area
Next, they’ll take note of the recent sale prices of similar homes—aka comps—in the area. After all, understanding how your home stacks up against others in your neighborhood helps the specialist assess its value.
Location and Neighborhood Values
Speaking of neighborhoods, the location of your home in terms of convenience, school districts, and general desirability certainly counts.
Home Improvements or Renovations
Innovations and improvements to the property that add real, tangible value can boost an appraisal—think major remodels, not DIY paint jobs.
They also consider the current market conditions. Are home prices trending up or down? Are homes selling like hotcakes, or is it a buyer’s market?
Fortunately, Charlottesville’s real estate market hasn’t followed the deceleration of appreciation registered at a national level. As a case in point, the average Virginia home value has increased a whopping 2.8% over the past year.
Why Do You Need a Real Estate Professional?
From Charlottesville’s lush landscapes to its quaint, charming neighborhoods, it’s a beacon for home buyers. Brimming with character and a variety of homes on the market—from adorable condos to townhomes—there’s a home for every taste and budget in this awesome place.
However, with a vibrant, in-demand real estate market like Charlottesville’s, knowing how to undergo home appraisals is key to making a confident, informed buying decision. That’s where local real estate agents come into play. They wield insider knowledge and have their finger on the pulse of local market conditions to help guide you through the process.
Take it from one of our clients. Jennifer witnessed how our team was with her every step of the way and went the extra mile to safeguard her investment. Our professional was key to ensuring her home was appraised appropriately, pulling in comps, and collaborating meticulously with her loan officer. That’s the kind of commitment and expertise you can expect from our team here at Denise Ramey Real Estate.
Ready to jump into the exciting Charlottesville housing market and find your perfect home? You’re in the right place. The team at Denise Ramey Real Estate is here to guide you throughout the process, including the all-important home appraisal. Contact us today to take the first step toward your dream home in Charlottesville.