Whether you’re trying to buy, sell or refinance a home, an appraisal has a big impact on you. An appraisal is designed to provide you – and the lender – with an unbiased professional opinion of a home’s value.
Appraisals are almost always used in home purchase and refinance transactions. In a home purchase transaction, an appraisal is crucial because it helps determine whether the selling price is appropriate given the home’s age, condition, location and features. An appraisal can protect your lender from lending too much in relation to a home’s market value. But an appraisal also can help protect you from paying too much! A home appraisal is important during a refinance, too, because it helps the loan provider avoid lending more money than the home is worth.
Want to know more about the role of appraisals in the home buying process? For more information about appraisals and how they affect home selling and refinancing, here’s some great information.