But what is a home appraisal, and what does it have to do with you buying the home?
What is a Home Appraisal?
A home appraisal, which most lenders require you to get before they’ll give you the money to buy a home, is an important part of any real estate transaction.
The appraisal tells your lender how much the home is worth. It’s an appraiser’s unbiased, professional opinion on value based on hard data. Typically, the appraiser uses recent sales information on similar properties, the subject property’s current condition, upgrades, and amenities, and the subject property’s location to determine its fair market value.
Your lender will choose the appraiser, but generally, the buyer must pay for the appraisal.
Why Do Lenders Require Appraisals?
Lenders require appraisals because they’re not willing to let someone borrow more money than a house is worth – it’s just too risky.
If you’re asking the lender to let you borrow $300,000 but the appraiser says the home is only worth $250,000, your lender won’t let you borrow $300,000. That’s because if you fail to make your mortgage payments and the bank repossesses the house, they’re on the hook for the money they let you borrow. They’ll sell the house, but if it’s only worth $250,000, they’re going to lose the $50,000 they paid to the original seller so you could buy the home.
What Does an Appraiser Look At?
An appraiser will evaluate the house from top to bottom. He’ll look at:
- The roof, foundation, and walls
- The size of the property
- The condition of the home’s interior
- The home’s major systems, such as plumbing and electrical
- Home improvements
- HVAC systems and other amenities
Are You Buying a Home in Midland?
If you’re thinking about buying a new home in Midland or the surrounding communities, we can help.
Call our team of Midland real estate agents at 432-698-0411 to tell us what you want from your dream home. We’ll find it for you!
In the meantime, search Midland real estate listings by price or search by school district:
- Midland homes for sale between $150,000 and $200,000
- Midland homes for sale between $200,000 and $225,000
- Midland homes for sale between $225,000 and $300,000
- Midland homes for sale between $300,000 and $400,000
- Midland homes for sale between $400,000 and $500,000
- Midland homes for sale between $500,000 and $750,000
- Midland homes for sale between $750,000 and $1 million
- Midland homes for sale over $1 million