When you’re buying a home, your lender will most likely require you to get an appraisal.
An appraisal tells you—and the lender—how much the house you’re buying is actually worth. (If you haven’t started looking yet, be sure to check out all our Grand Junction, CO homes for sale. Some really great properties just hit the market!)
What’s on a Residential Appraisal Report?
An appraisal is a very detailed report that shows how the appraiser—the person who determined the home’s value based on market research, the home’s features, and many other factors—valued a home. The appraiser also evaluates sales data to come up with the most accurate value possible.
On your residential appraisal report, you’ll find:
- Details about the property, such as its number of bedrooms and other features
- Side-by-side comparisons of other properties and the one you’re buying
- An evaluation of the entire real estate market in the area
- Lists and statements of things the appraiser deems harmful to the property’s value
- Lists and statements of serious flaws
- How long the appraiser thinks it will take to sell the home
- The type of property and area in which it’s located
What if the Appraisal is Low?
Let’s say you’re ready to buy a house in Grand Junction for $400,000, but the appraisal says it’s worth $375,000.
What should you do?
Talk to your Realtor and determine how badly you want the house. Will the seller be willing to take $25,000 less than what he or she originally wanted? (Some sellers attach thousands of dollars in sentimental value to their homes, which means they can be tough to reason with when an appraisal comes in low.)
You can ask the seller to make repairs or upgrades that will improve the value of the home, too; sometimes sellers who don’t want to budge on price are more amenable to making changes.
The bottom line: your Realtor will help guide you on the best course of action because no two cases are the same. Your agent is going to evaluate your needs, help you work through the budget, and negotiate with the seller for you.
Are You Buying a Home in Grand Junction or the Surrounding Communities?
Call us at 970-765-4135 or get in touch with us online. Tell us what you want from your next home and we’ll start looking right away.
In the meantime, please feel free to explore our Grand Junction real estate listings based on the type of property you want – just use the links below.