What is the appraisal of the property or property appraisal?

If you are purchasing a home, one of the key components to securing financing will be the appraisal of the property you wish to purchase. The bank needs to confirm that you are purchasing the home at a reasonable price and that if you needed to sell because of the foreclosure, they would be able to get your money back.

The appraisal is based on establishing the fair market value of your home. This means evaluating the square footage, important features of the home such as garages, bathtubs, number of bedrooms and lot size and then comparing your home to properties that have been sold in the area. Obviously, it’s much better if the price of your home is higher than the price you’re buying it for. If the appraisal does not meet your lender’s standards, the bank will only lend you what the appraisal says the property you want to buy is worth.

In some cases the price can be renegotiated with the seller, but in many cases not. One way to ensure that you do not lose your deposit is to make a note in the purchase and sale agreement that you can withdraw from the agreement if the house does not value appropriately.

How much does a property appraisal cost?

The cost will depend on the type of property and size and varies between $400 and $1,000 and is the buyer’s responsibility to pay for it.