Doing a home evaluation is very important as it helps you to know what your home is worth. This is especially important if you are in the real estate business or if you are planning to buy the home on mortgage. In most cases in order to get approved for a mortgage, home evaluation is needed. The evaluation report is what will make the bank decide on how much t can lend you. A bad evaluation is worse than a bad credit score and will certainly kill plans for your new home. This is because most lenders want they assurance that they are investing on an asset that they can always recover their money in case of a default. A home evaluation will also help you determine if a home is overpriced or not especially if you are buying.
Home evaluation process
In doing home evaluation, an appraiser will do an inspection of both inside and outside your home. He will also seek to determine the prices of similar properties in the area to determine if your home is in the right price range. They will determine the size and condition of the house as well as check for any improvements made to the house and the materials that were used. They will check for any structural problems in the house. Appraisers will also do an evaluation of the market trends and a comparative market analysis. They will then generate a report that will contain all that information.
Home evaluation cost
The cost of evaluation will vary from company to company. There are many factors that affect the price such as the location, square footage of the home, and property type among many other factors. Most appraisers will include their costs in the closing costs of the home.
If the home evaluation results were low, it means that you might be signing up for a raw deal. It may be that the home owner should make some changes in the home or the home owner should cut down on the costs he is charging. In some cases you can do an evaluation from a different person to do a comparison though that may be an expensive move.
In case you are the seller of the home and the evaluation results are low, it means that you will have to do some home improvements and repairs. Good thing is that from the report, you can always depict what is making the results low. You can fix the errors and do a second appraisal to see if the value will increase. There are many ways of increasing the value of a home such as doing a makeover to the home especially if it is old to give it a new feel again. Otherwise you have to sell it at what its value is.
There are many good companies that have specialized to make home evaluation bliss such as mission real estate. They even have a free home evaluation online that you can give a try.