An appraisal of property serves the benefit of both the seller and the buyer. This not only makes sure the price listing for the property is fair but also to insure the buyer isn’t overpaying.
Paying Too Much For Too Little
Cash buyers are not looking into financing, but caution is still be practiced. Purchasing a home is the largest investment most people will ever make in their lifetime. You want to be sure that what you are paying for is worth the price tag.
Compare Various Other Homes On The Market
What an appraiser places on a property is one thing but it should not be the only thing for a buyer to consider. Doing a little homework can provide other valuable information. Comparing other homes on the market by the style of home and the floor plans. The materials within the home such as hard floors vs carpet, new windows, new roofs, etc. The actual layout of a home can play a pretty important part of market value. If a particular floor plan is rather out dated, will you have problems selling it ten, twenty years down the road? Would you be doing your own renovation over a period of time? Will your renovations bring the property up when it’s time for you to sell?
Is the neighborhood on an incline or a decline? Home values are affected by these situations.
Your Negotiation Skills
Keeping the appraisal of a home realistic in your own mind is very important! Sellers might not always be thrilled with the appraiser’s findings, but it keeps the buyer protected from those who would overprice their homes. Buyers, in turn, should protect themselves by knowing the true market value when making an offer on property.
Property Taxes
On the upside, if an appraisal has come in less than the tax assessments, the sales information could be utilized to lower the taxes of the new owner after purchase has completed. Keep in mind, local taxes are not recognized when purchasing property that has come from a bankruptcy. Bankruptcies are usually auctioned off and therefore you could pick up a home for less than the appraisal so taxes will not alter.
Make Sure All Agreements Are Met
In many cases, the buyer and seller will come to an agreement on some issues before the buyer will purchase. If the seller is willing to replace an aging roof, replace poorly stained carpet or a broken window get it in writing. You should have a check list and make sure everything has been carried out before committing. A buyer may walk out on a deal if these repairs are not performed. So have a copy of the agreement long before you walk into the closing.
In Conclusion
There are many reasons why cash buyers want to hold on to appraisal information. It’s much easier to know you are getting a good deal or proper deal when purchasing a home than to get hoodwinked. The significance of knowing the appraisal will give the buyer many benefits as well as protection from overpaying for property.