A home appraisal is an important part of any Lake Charles Real Estate purchase. Understanding Lake Charles real estate appraisals will help buyer and seller know what to expect when its time for the home appraisal.
Real estate appraisal, property valuation or land valuation is the practice of developing an opinion of the value of real property, usually its Market Value.
I am a licensed REALTOR, Not an Appraiser so for purposes of this Lake Charles Real Estate Blog, I am not speaking as an Appraiser I am only qualified to provide a Lake Charles home buyer or Lake Charles home seller what is known as a comparative market analysis. This Lake Charles Real Estate blog is to help home owners and home buyers understand the importance a Lake Charles real estate appraisal plays in the Lake Charles home buying process.
When a buyer enters into contract to purchase a Lake Charles home for sale, in order to obtain financing the lender will require a home appraisal on the subject property. The buyer’s loan officer or bank usually places an order for the appraisal. An appraiser will then be contacted and will make an appointment to view the property and prepare his or her appraisal report. Once completed, the appraiser sends the Lake Charles real estate appraisal directly to the lender and/or bank.
In order for the buyer to obtain loan approval, the appraisal must not be less than the contract price of the Lake Charles Home for Sale. If a Lake Charles home appraisal comes back less than the contract price, then the buyer must notify the seller and a new contract price must be negotiated at the appraised price or the purchase may become null and void. (Note that there are occasions where if the home buyer still wants to move forward with the Lake Charles home purchase and the seller will not reduce the price of the home, the buyer may pay the difference in cash.)
Appraisers may make note of repairs that are needed. These can vary and be as simple as a cracked window pane . When this occurs, the lender will require repairs to be completed as a condition of the loan approval. Proof of the repairs will also need to be submitted to the lender with the appraiser usually being asked to return to the property and document completed repairs on his or her appraisal report.
Before a Lake Charles Seller lists their Lake Charles home for sale, it is recommended that the home be in good condition so that repair issues can be avoided. When considering listing your Lake Charles Home for Sale, sellers may want to obtain a home inspection or appraisal ahead of time so the seller can correct any deficiencies noted.
Sometimes an appraiser is requested to amend his or her appraisal report. There may be a discrepancy in sq ft dimensions which a seller may contest. Most appraisers measure by what is known as ANSI standards however this is not always the case so measurements may be more or less what original building plans may show.
Bottom line is this:
- Buyer’s appraisal needs to be for the amount of purchase or greater in order to move forward with obtaining mortgage approval.
- Repairs Noted must be completed in order to move forward with obtaining mortgage approval.
Understanding Lake Charles real estate appraisals is an important part of Lake Charles Real Estate and homes for sale.