After a home inspection, it’s time for an appraisal. See why this step can be a big benefit to your wallet.
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My clients are always looking for a step-by-step checklist about what happens during the process of buying a home. Today, I’ll be sharing with you one of the steps that comes after getting a home inspection: the appraisal.
You’ll pay around $500 to your lender for an appraisal. What is an appraisal for? Well, the lender wants to ensure that the house you’re buying is worth the amount of the loan they’re lending. This is a win-win for the buyer. For example, let’s say you’re buying a $300,000 home and the appraisal comes back at $350,000—you just gained $50,000 in equity because it’s actually worth more than the bank believes it is.
Nine times out of 10, the seller will agree to lower the price to that of the appraisal.
Now let’s say the house is only worth $250,000—this is still good news for the buyer. Your agent is going to renegotiate that original $300,000 price with the seller. Nine times out of 10, the seller will agree to lower the price to that of the appraisal.
I hope this has been informative for you, and if you have suggestions for topics you’d like me to cover, have additional questions, or would like more information, feel free to reach out to me. I look forward to hearing from you.