If you’re buying or selling a property, you’ll likely need to have an appraisal done. Appraisals are generally required by lenders in order to get a mortgage, but they can also be useful for buyers and sellers who want to get an idea of what their property is worth.
Here’s what you need to know about property appraisals:
What is a property appraisal?
A property appraisal is an estimate of the value of a property. Appraisers will consider factors such as the location, size, condition of the property, recent sales prices of similar properties, and more.
Why do I need one?
If you’re taking out a mortgage to buy a property, your lender will likely require an appraisal. Lenders want to make sure that they’re not lending more money than the property is worth.
An appraisal can also be helpful for buyers and sellers who want to get an idea of what their property is worth. This can be useful in negotiating a price for the property.
How much does it cost?
The cost of a property appraisal varies depending on the size and location of the property. Though there are some agents who offer this service for free, there are also some who charge for property appraisals – usually starting at 450 NZD.
When should I get one?
If you’re buying a property, you’ll need to get an appraisal before you can finalize your mortgage. If you’re selling a property, you may want to get an appraisal before putting your home on the market so that you have an idea of what to expect.
How long does it take?
An appraiser will usually need to spend a few hours at the property in order to assess it properly. The appraisal report can take a few days to a week to prepare.
What if my property doesn’t appraise for the purchase price?
If your property doesn’t appraise for the purchase price, you’ll have a few options. You can try to negotiate with the seller to lower the price, ask the lender for a higher loan amount, or make up the difference with a down payment. If you’re not able to come to an agreement, you may have to walk away from the deal.
Property appraisals are an important part of the home buying and selling process. Be sure to ask your real estate agent or mortgage lender any questions you have about the appraisal process.