Understanding The Residential Real Estate Appraisal Philadelphia PA Bankers Have Required

By Edward Anderson


There are a lot of details involved in purchasing a new house. Most people are surprised to find out how complicated it can be. Once you have decided on the property you want to buy, you have to negotiate the price with the seller. There are legal documents to read, understand and sign. You have probably already chosen a mortgage lender and have had preliminary meetings to find out much money you can borrow. Before a closing can occur in Pennsylvania, your lender will probably want a residential real estate appraisal Philadelphia PA regulations recommend.

Getting a property inspection seems like an unnecessary expense to a lot of inexperienced buyers. They are already spending so much money, they may want to cut corners wherever they can. Their lender probably has other ideas. One of the stipulations they have is that the house be worth the money they lend you to buy it. Financial institutions also need to be sure they can resell the house if you don't make the payments.

Most people have some understanding of what an appraiser does, but many are not sure how he or she goes about it or what kind of education and experience they have. First time home buyers are often nervous about what value the appraiser will put on the property they want to buy. If it is too low, the mortgage lender may not approve the final sale price, forcing them to find additional funding somewhere else.

If the financial institution has approved the appraiser assessing your property, you can rest assured that individual is a certified and licensed professional. Many appraisers have four year degrees in their field. They have to go through testing procedures and be in compliance with all the rules of the associations that govern their area of expertise.

Appraisers use several methods when they asses the value of a property. They will inspect the property in person and take detailed notes. The physical assessment will include such items as age, condition, size, and amenities. Once they have completed a physical inspection, they can begin research to find similar properties that have sold recently in the area. They may also pull other property documents from courthouse records such as past tax assessments.

Homeowners who are trying to refinance their existing mortgages may also be required to hire an appraiser to evaluate the property they own. Any kinds of improvements made to the house since the original mortgage was made will be taken into consideration as long as the appraiser has copies of the work done and the cost associated with it. A detailed report will be submitted to the lender.

The cost of property inspections vary depending on the complexity of each property and the amount of time it takes to find appropriate comparable sales. You, as the buyer or homeowner, are responsible for the cost, but the actual report will belong to the mortgage lender.

Getting a property evaluation can be nerve wracking because you want the value to reflect the price you are paying. Hopefully your assessment will be in line with the amount of money you need to borrow.




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