Understanding the appraisal process is key to a successful home purchase. When your lender orders a home appraisal through a central service, the appraiser utilizes a traditional “Sales Comparison” approach, analyzing recently sold homes. Here’s how this process unfolds and why it’s crucial for buyers and sellers in the Sunshine State:
The appraiser examines similar homes recently sold, using a Sales Comparison approach. This involves visiting the pending property, comparing it to recent sales within a small radius over the last 3-6 months, and making adjustments to determine a comparable value.
The value reported by the appraiser is vital for the lender in assessing the risk associated with the loan. If the appraised value is lower than the sale price, negotiations may be required. The seller might need to agree to lower the sale price, or buyers may need to cover the difference in cash. Lenders only lend based on the appraised home value.
Your real estate agent plays a crucial role even before making an offer. By analyzing sold prices of similarly priced homes, they can mitigate the risk of the appraised value being lower than the purchase price. This proactive step ensures that you pay fair market value for your Florida home.
Navigating through the appraisal process is just one step in your real estate journey. Once the appraisal is complete, it’s time to plan your move. Explore more about your post-appraisal steps and create a smooth transition into your new Florida home.
Ensure a seamless real estate experience in Florida by staying informed about each step in the process. Connect with our expert real estate agents to make confident and well-informed decisions at every stage of your home buying journey.
Contact Sea Glass Properties to get started on your home search.