9 Reasons to Get a Free Home Appraisal from a Professional Realtor

There are many reasons why you as a homeowner should get a free home appraisal from a realtor because in selling your home, there’s a need to accurately disclose how much is its living area to determine its value.

Whether you’re selling or buying a home, you should always consider getting a free home appraisal from a professional realtor. As a seller, owner, or buyer, you should also understand what home appraisal is, how its process works and how a professional appraiser can determine the value of a home.

What is Home Appraisal?

A home appraisal is an unbiased opinion about a home’s value given by a professional. Home appraisals are always used in sale and purchase transactions. They are also commonly used for refinance transactions. In sale and purchase transactions, appraisals are used to determine if the contact price of the home is appropriate to its condition, features, and location. In refinance, an appraisal will assure the lender that it will not be handling the borrower even more money than the home’s worth.

How do Home Appraisals work?

Home appraisals vary in every state, but here are the 3 major parts of home appraisal:

  1. Inspection – A professional appraiser or realtor will come to the property and inspects it in order to determine fair market value.

  2. Comparables – The professional realtor will research similar homes in the area and compares latest sales for the market value.

  3. Final Appraisal Report – Through the data gathered by the realtor from his inspection and comparables research, he will be making a final appraisal report.

Why do you need an Appraisal for a Home Loan?

A professional realtor helps you in establishing the market value of your property. This is likely to be the sales price that it will have if it’s offered in a competitive and open real estate market. Home appraisals protect the client as well as the lender in order for them not to overpay the home.

9 Reasons why you need a Professional Realtor for your Free Home Appraisal

  1. They will show you the difference between unfinished and finished area. Measurements between unfinished and finished areas are very important to be segregated and understood. Finished areas are the areas that are cooled and heated and are in a habitable condition while the unfinished areas are like basements having concrete walls and floors but are not heated nor cooled and not ideal to live in. There are also homes that have basements with low ceilings and dirty floors but these areas are not part of the calculations.

  2. They know where to take measurements. Correct measurements are normally taken from the homes’ outside walls and on all its levels. This is can be difficult if the home to be measured has a second level and if it’s 1.5 story home. However, measurements are usually taken from the inside on its second level. Wall thickness will just be added back. Floor plans not meant for appraisal purposes will have to use the interior measurements taken from the outside measurements, and there will be more of the square footage to be accounted.

  3. They know what areas to include in Gross Living Area (GLA). Some people consider this as minor but including areas that are not allowed to be included in GLA while pricing your home with square footage, appraisal may not apply. Your home needs to be measured by the realtor juts like how it will be measured for loan appraisal.

  4. They will let you know if you can include an apartment in the GLA. There are times that homes have mother-in-law quarters or teenager apartments that may be an addition to GLA but it must be according to ANSI Standard. If it doesn’t meet this requirement, then your GLA may be overstated.

  5. They know the stairwell rule. The more square footage means the more money you can benefit for your house. Professional realtors know this rule and allow them to always include square footage that some inexperienced appraisers may not include.

  6. They can verify if the county has correct area calculations. If you have been paying higher rates for your property taxes, you may want to double check if your home has been taken the correct square footage. The county usually values a home depending on how huge it is. When you have documents to prove that it’s smaller, your property taxes will be reduced.

  7. They know the ceiling height rule. In home appraisals, there is a ceiling height rule. A professional realtor knows which areas are allowed and not allowed in this rule. The inclusion of the designated areas will overstate GLA so you also have to overstate the asking price.

  8. Potential buyers will know if their stuff will fit in the house. If the potential buyer of your home just moved out from a 1,500 square foot home and needs to move into a larger home, you should have the proof that their stuff will fit because if you don’t, you’ll lose the scale. Buyers from the outside of the town are used in reviewing sq. ft. listings and quotes. It will be an advantage for you if your will include such information.

  9. Property will be more likely to appraise for contract. As mentioned, if the correct calculation of square footage used the method of a professional realtor, value indifferences that relate to wrong square footage will be excluded.

Hiring a professional realtor for your home appraisal is a very good idea because they have the professional expertise to help your determine the accurate value of your home. It’s important that you don’t disregard hiring a realtor so that you can be sure of the price of your home if you’re selling it same as when you’re buying a home. Your professional realtor shall be your guide to selling/buying your home with the correct process and pricing. Getting a free home appraisal from a realtor gives you the chance to get more money for your home.