You may know that getting an appraisal is an important part of any home purchase transaction, but do you know how the process works?
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One of the most crucial aspects of buying or selling a Portland home is the appraisal of the property. Here are some of the key parts of the process:
What is an appraisal? A non-biased third party will physically come to the property and inspect the interior and exterior of the home. The appraiser will then pull comparisons from the neighborhood—typically homes that have sold or are currently pending within a close radius—gather the information, put it into a very thorough report, and come up with a value. Upon finishing the report, the appraiser will then send it to the lender, the lender will contact the buyer, and the buyer will be able to pick the report apart to find out how the value was calculated.
How do appraisals affect the home buyer? The appraisal is performed to protect the buyer from overpaying for the property.
How do appraisals affect the home seller? If the appraisal comes in below the sales price, the borrower will not be able to obtain a loan to purchase the property. If this is the case, either the seller will have to lower their sales price to accommodate the appraised value, or the buyer can come in with a larger down payment to make up the difference.
If you have any other questions about the appraisal process and what to expect during it, or you’re thinking about buying or selling Portland real estate, give me a call or send me an email. I’d be happy to help you!
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