One of the most important parts of the home-buying process is to get a home appraisal before the certificate of occupancy can be issued (if the home is new construction) and the closing can take place. The primary purpose of a home appraisal is to determine the actual market value of the home. The home appraiser will look for any potential items that might decrease the value of the home. In order to determine the value of the home, the home appraiser will assess a number of different factors. Some of these factors include the following:
The location of the house
The square footage of the house
The price that comparable homes in the area have sold at
Any visible defects that can cause the value of the home to decrease
It is important to note that the home appraiser will not be assessing any factors that are not visible to the eye while simply walking through the house. For example, the home appraiser will not consider mechanical systems because that is the job of the home inspector.
The buyer will typically be required to pay for the appraisal even though the lender orders it. If you have questions about the real estate process, contact our firm today.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.