Wednesday 3 July 2013

Online Home Appraisal – The Easy Way to Estimate the Value of Your Home

When you plan to purchase a home, one of the first things that you decide is your budget. This forms the guide when you consider different options to buy a home. However, how do you know if a home is priced within your budget? Although a real estate agent gives you a rough estimate of the house, you cannot blindly trust the valuation. The house might turn out to be too worn out from within and you might have to spend additional money getting things repaired. A good solution to avoid such extra expenses is to get the home appraised by a professional appraiser. The benefits of getting your home appraised before purchase are too profound to be ignored. 

Besides, if you want a home loan, you cannot get one without getting a home appraisal done. The money that a lender lends for the home is a partial percentage of the appraised value. Lenders usually offer between 60 percent and 90 percent of the home value. So, if the appraisal report of your home sets its value at $500,000, you might receive around $300,000 to $450,000. An appraisal report provides a kind of assurance to the lender because in case you cannot repay the money, the lender is sure to get at least the lent out money when the company auctions the home.

Appraisal vs. comparative market analysis

Appraisal reports are not the same as comparative market analysis (CMA). CMA is at best a rough estimate of the home value and is not as precise as an appraisal report. This analysis emphasizes on factors such as the neighborhood and the properties that have been sold in the same area as your home. A professional appraiser does a more thorough job of evaluating the property and ensuring its actual market price. When you apply for home loans, lenders do not consider a comparative market analysis report. They consider only a professional appraiser’s report. 

Online home appraisals simplify the task

Online home appraisal websites have made the task of valuating your home a lot easier. To estimate the value of your home, you just have to fill in the different categories provided on the page and submit the form. Categories include address, city, province and house details such as number of bedrooms, bathrooms, home area, house type, parking facility, age of the house and other information. 

Based on these factors, the online calculator does its math and gives you the value of the home. You can use this value as a guide when you purchase a home. If you choose a reliable and reputed online home appraisal website, you receive an almost accurate value. However, experts suggest that you must provide a margin of 5 to 10 percent from the real home value because online appraisers do not visit the site to look into the condition of the home. In any case, a good online evaluator provides a good enough estimate to start out with.
 

 

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