Appraisals are an essential part of most real estate transactions. They are ordered by a bank or lender to make sure a property’s sale price is accurate.
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The question of, “What is an appraisal?” is one we get quite a lot, especially from buyers. They want to know what the process is like. Unless you are buying a home with cash, an appraisal will be part of your purchase process.
The bank or mortgage company that you get financing from is the one who will order the appraisal. The good thing about this for buyers is that the bank will not allow you to buy a property for more than it appraises for. This essentially prevents you from overpaying for a property.
We need to be cognizant of the appraisal price, so knowing what the comparable properties are in your area is a must. Appraisers use these homes to determine whether the sale price is fair or not. We need to also give ourselves some negotiating room in the inspection, which comes before the appraisal. We don’t want you to get too deep into the transaction and have it fall apart if the home doesn’t appraise.
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If you’re selling, we recommend that you actually get an appraisal before you list if there are any questions at all as to where we should price your home. That way, when we do go live on the market, we can prove the price we have to the buyer and their agent so they have evidence to help their buyer make a better, more confident offer.
An appraisal in Philadelphia right now costs between $375 and $400.
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An appraisal in Philadelphia right now costs between $375 and $400 and will be included in your closing costs if you’re a buyer. A seller would have to pay out of pocket for an appraisal.
If you have any questions about appraisals or anything else relating to real estate, give me a call or send me an email. I would love to hear from you.
