Purchasing a Home-What’s it Worth?

Purchasing a Home-What’s it Worth?

“A home is only worth what a buyer will pay for it.” For the most part this is true, but in most cases a home’s worth is not subjective, especially where financing is involved. Nearly all mortgage companies use appraisers to evaluate the home’s worth before they will fund.

How do appraisers evaluate a home’s worth for a purchase? The most common method is to use recent sales (within the last 6 months) on like or similar homes in the same area. A home may have a better location, view, or upgrades superior to the like matches. These qualities are also taken into consideration as well as other factors such as market trend, a down or up market, and the inventory.

Before you make an offer that has mortgage financing, your Realtor® should be able to assist you and provide information (comparable sales within the last 6 months) and use the same information that an appraiser will use to evaluate the home. Ask for this information prior to making an offer.

Rich and DelAnn Lozzi, Owner/Broker of Ocean and Land Realty, California license BRE 01961327 are here to serve your real estate interests. Contact them at (949) 525 3626/3766 for the best real estate offers.

The video below will help you understand how appraisals work: