Getting Prepared for Your Home Appraisal

Buying a new home in Colorado Springs is a wonderful investment, but it’s not as easy as find, click, buy. From the moment you find your dream home to the day where you sign the paperwork and become the official owner there are many hoops that have to be jumped through, appointments to schedule for the home, and discussions to have with your lender and your Colorado Springs real estate agent. One of those hoops is the appraisal. This is a valuable step in buying your home, but do you really know why you need it? Here are a few things you need to know about your appraisal.

Why Do You Need One?

An appraisal is simply the valuation of your property or home, which allows you to purchase it. You need an appraisal because most lenders actually require it when you use the home as collateral. Lenders want to be assured that the property is actually worth the lending guidelines.

Who Does the Appraisal?

The appraisal is generally done by a third party individual. The person can have no financial stake in the outcome of the appraisal, which is good for everyone involved. Mortgage companies usually hire and Appraisal Management Company (AMC), and they will then hire a local appraiser from their resources. The buyer pays for the appraisal and that is part of the home loan process.

What Is Figured Into the Appraisal?

An appraisal will include a detailed list of many different factors about your home. Most likely it will include details about your property as well as compare the property to three others in the area that are comparable. They will also look for anything that is considered detrimental, whether it be the condition, property access, crumbling foundation, and more. They will also take into account how long it may take to sell the home.

What Will Your Appraiser Be Looking For?

Property Size - Do you have a large house lot? How big is your home? Do you have a lot of rooms, or only a few? Can you expand the home size, or are you limited to only what is there?

Interior - Were hazardous materials used when building the home? What materials were used inside? What types of fixtures are in the home, like lights, faucets, or appliances?

Improvements - Have there been recent upgrades to the home such as a kitchen upgrade or bathroom remodel?

Extras - Are there items in the home that would add value like a fireplace, air conditioning, hard wired sound system, or a security system? You’ll want to make sure those items are pointed out.

Exterior - What is on the exterior of your home? Are they good materials, or hazardous? What is the foundation like? Is the exterior in good condition?

Buying or Selling Real Estate in Colorado Springs

Whether you are buying selling your home, a home appraisal affects you and your real estate. There are things you can do to make this process go smoothly and help you home pass. As the best real estate agents in Colorado Springs, we would love to not only help you sell your home, but then help you buy your new dream home! If you’re ready to start your real estate journey with us, visit our website to get started!

Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919

719-536-4324 or 719-660-6793


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