What Goes Into A Residential Real Estate Appraisal Philadelphia PA Bankers Require

By Edward Anderson


First time buyers are often amazed at everything that goes into purchasing a home. Many tour dozens of homes weighing the pros and cons of each. The monthly payment they will be responsible for and the down payment they will have to make is a big concern. Most Realtors will instruct clients to contact a reputable mortgage lender and get pre-approved for financing. There are often price negotiations before an agreement with the seller is reached. Before the closing can occur, most lenders in Pennsylvania ask for a residential real estate appraisal Philadelphia PA mortgage guidelines recommend.

Inexperienced buyers don't always believe a property assessment is necessary. They may be familiar with the house they are interested in and know the history of the place. They might be purchasing a brand new house that shouldn't have problems. Your lender has to answer to supervisors, regulators, and board members who will want to know money is being wisely allocated. If a mortgage broker approves a bad loan, there will be asked serious questions asked.

Not everyone really understands exactly what appraisers do or what qualifications they have to have in order to evaluate property. The buyers often fear an assessment will come in low, and the lender will not want to finance the total purchase price. If that happens, the buyer will have to find another source of funding for the difference.

If the financial institution has approved the appraiser assessing your property, you can rest assured that individual is a certified and licensed professional. Many appraisers have four year degrees in their field. They have to go through testing procedures and be in compliance with all the rules of the associations that govern their area of expertise.

First time home buyers may not understand exactly how the appraiser evaluating their property comes up with the final price. They know that this person inspects the house thoroughly, going from the basement to the attic checking the plumbing, the electricity, and making note of any amenities. After that, it is a process of researching Multiple Listing Service listings and recent comparable sales in the neighborhood. The experience they have gained over the years is also a factor.

Any documents you already have pertaining to the property, like tax bills and surveys will help the appraiser put an accurate value on your house. If you have applied to refinance your existing mortgage and have remodeled or improved your house in some way, you need to give the assessor any documents showing the work you did and how much you paid for it.

Buyers are responsible for paying the appraiser even though they may not have ordered the inspection. The cost will depend on how much work is involved in appraising the property and how long it takes to find comparable sales. You have a right to receive a copy of the final report, but the actual document belongs to the lending institution.

Getting a property evaluation can be nerve wracking because you want the value to reflect the price you are paying. Hopefully your assessment will be in line with the amount of money you need to borrow.




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