If you've applied for a mortgage, your new home will have to be appraised before the loan will go through. Ultimately, your mortgage lender wants to be sure that the home they are lending you money for, is actually worth what you've agreed to pay. The appraisal should also provide peace of mind for you, as the buyer, to make sure you're not paying too much. Appraisers will verify the square footage, condition and any remodels or upgrades in the home to determine the value of the home.
Appraisers can help protect the buyer from a less than desirable purchase. If your heart is set on this home, you may be worried the appraisal won't come in at the contract price. If a home just is not worth what you've agreed to, as the buyer you can go back to the seller to re-negotiate the price of the home or you can pay the difference. An experienced Realtor can help you through the process.
It's important to remember that the appraiser works for the lender, not for the home buyer or seller. However, the buyer does end up paying for the appraisal as the cost will be included in the buyer's closing costs. The appraisal fee is typically between $300-$500 depending on the size of the house. Appraisers must remain independent of the buyer or seller to ensure that the appraised value of the home is not influenced by either party.
In addition to having the home appraised, you should also hire a home inspector to make sure everything is working as it should. Appraisers won't go through the home making detailed notes and confirming everything is in working order like an inspector will. If the appraiser or inspector does provide special notes on trouble areas, like the roof, it is highly recommended you have a specialized contractor or inspector to take a look before moving forward.
If you are planning to buy a home in Reno-Sparks, Sallan Real Estate has long history of working with buyers in all areas of Northern Nevada. Please contact us for more information about buying a home and we will create a customized home search that will send you homes that meet your requirements as soon as they hit the MLS.