Monday, February 20, 2017

Understanding The Residential Real Estate Appraisal Philadelphia PA Bankers Have Required

By Edward Anderson


There are a lot of details involved in purchasing a new house. Most people are surprised to find out how complicated it can be. Once you have decided on the property you want to buy, you have to negotiate the price with the seller. There are legal documents to read, understand and sign. You have probably already chosen a mortgage lender and have had preliminary meetings to find out much money you can borrow. Before a closing can occur in Pennsylvania, your lender will probably want a residential real estate appraisal Philadelphia PA regulations recommend.

Getting a property inspection seems like an unnecessary expense to a lot of inexperienced buyers. They are already spending so much money, they may want to cut corners wherever they can. Their lender probably has other ideas. One of the stipulations they have is that the house be worth the money they lend you to buy it. Financial institutions also need to be sure they can resell the house if you don't make the payments.

A lot of buyers get nervous when they find out the financial institution is requiring a property evaluation. It can affect how much money the buyers will get. If the appraiser doesn't value the house close to the purchase price, the prospective purchasers will have to make up the difference or withdraw from the sale. It is in everyone's best interest to make sure the sale price can be justified.

Appraisers who have the approval of banks and other mortgage lenders are licensed and certified. Most are very experienced, and many have advanced degrees in their field. All appraisers must follow the appropriate association rules and regulations.

Appraisers use several methods when they asses the value of a property. They will inspect the property in person and take detailed notes. The physical assessment will include such items as age, condition, size, and amenities. Once they have completed a physical inspection, they can begin research to find similar properties that have sold recently in the area. They may also pull other property documents from courthouse records such as past tax assessments.

To begin the process, the appraiser will make an appointment to inspect your property. If you have certain documents, like tax bills and surveys, if will make the inspector's job easier. If you are trying to refinance your existing mortgage and have made improvements to the home, you need to give the appraiser copies of what you have done and how much it cost.

Property inspections are just a fraction of the total cost of purchasing a house. It may run as little as four hundred dollars or so depending on the complexity of the job. If you are a buyer, you should be aware that you will be responsible for paying the appraiser.

First time buyers are often anxious when they are waiting on an appraiser to file a report. They know their mortgage approval may depend on it.




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