Why You Need Real Estate Appraisers When Buying Or Selling A Home

When you are buying or selling a home, real estate appraisers are likely to come into play. These appraisers are paid by the people who hire them and not real estate agencies or their agents. The average cost to have a home appraised is around $335, but you may pay more or less for your own appraisal needs based on where you live, the type of property you're buying, and other factors. The size of a property and the type of appraisal you're getting — a full interior/exterior appraisal or a drive-by appraisal — also determine what real estate appraisers will charge you for their services.

Here are reasons why you need real estate appraisers when buying or selling a home. You may also need to have appraisers come to your home for other reasons, which you'll discover here.

You want to list your home in a buyer's market

A home appraisal is what a home is worth in the current market it's in. The appraisal is based upon the current market, neighboring home values, and what improvements have been made on a home. In many cases, a home will increase in appraisal value simply with time, but not in every market, such as a buyer's market.

If it's a seller's market, appraisals are less important because buyers are willing to pay whatever it takes to get into a home in many cases. When it's a buyer's market, however, buyers can be choosier about the homes they pick, and they want to make sure what they're buying is a bargain. To list your home properly, you'll want to pay real estate appraisers to place a current market value on your home.

You want to buy a home and have a lender

If you want to buy a home and have a lender finance most of your purchase, you have to know that the home you're buying is worth what the seller wants for it. If the home isn't appraised high enough to meet the seller's asking price, you have to come up with the difference in the amounts because lenders won't lend beyond a home's appraised rate. Appraisers will ensure a home is appraised appropriately so the banks and buyers are protected and are paying what is fair for a property.

You want to remove mortgage insurance on your home

Mortgage insurance is an additional fee you pay on your home when you have less than a certain amount of equity in the home. If your home has risen in value and you believe its appraised price is more than what you owe on it, you can hire real estate appraisers to come to your home and do a current appraisal. If your home appraises high enough, you may have enough equity in the home to have the mortgage insurance removed.

Contact real estate appraisers in your area to learn more.