Home Appraisal (sales, loan, how much)

[DallasDream]

Hi

Just wanted to understand this term "Home Appraisal".
1.when and where does it come into play.
2. Can a new homes be appraised or only old homes.
3. How do we come to an appraisal number, what all things are taken into consideration.
4. Where to get this appraisal figures for a particular house or community.
5. In case of new construction by builders. How to know if the price the builder is quoting on a new or inventory home is right number. Iam scared i might end up paying more than the worth of the new home .

Any help will be appreciated.

[SouthernBelleInUtah]

Appraisels are done by certified appraisers to ensure a lender isn't going to lend you too much on a house. New homes are not appraised. You should have a buyer's agent even on new homes, as they are the ONLY ones working for your interest. They can advise you what they think you can negotiate down to on a new home. My son had a home built from scratch and negotiated the price from $219K to $209K with a lot of extras. Of course, it was November and the builder probably wanted the work in the winter.

[kreeyax]

I've purchased two new homes and they were both appraised. You have to be careful not to add too many options to a new home because it may drive the sale price too high above the appraised value, making it tougher to get the loan unless you put enough money down. I believe the appraisal is ordered by the lender prior to your closing date, you don't need to do anything but I would make sure your realtor stays on top of it just in case. I agree about having your own realtor, they can see what other homes have sold for in the area to give you a good idea if you are overpaying or not. In my experience you get a better price on an inventory home than you do on a dirt build where you pick everything out. I saved about 15% on my last inventory home vs. a dirt build of the same floor plan.

[SouthernBelleInUtah]

Sorry, should have said that new builds are more likely to appraise at sales price. Existing houses may or may not appraise right which is why a contract should have a contingency that it must appraise at or above the sales price.

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[nsumner]

This is a crucial part of your Realtor's job. Yes, new homes are appraised, sometimes they come up short of what the builder is asking. Your Realtor should do a market analysis and see what similar floorplans sold for.

The appraisal is ordered by your lender. This is after you have agreed to a sales price with the builder. Appraisers take into consideration previous sales, upgrades, location, not more than 6 months within the same neighborhood.

Naima

[DallasDream]

Thank you all for your reply....

SO your saying that a realtor would allways carry appraisal comp all the time or can get for a community which he represent us right

[SouthernBelleInUtah]

Comps are not appraisels. They are mathematically determined comparable houses/prices, sold in the last 6 months, to give you an idea of what has sold and for how much in the area where you have found a house that you want to offer on. Factors are applied, e.g., your prosepctive house has a carport but comps had garages. And yes, your agent will be able to "run comps" once you find a house you like to help you determine an offering price and a price you should not go over.

[Pete53FR]

Home appraisals are now totally based on 2 or 3 comps sales in the neighborhood. Its a shell game now.