What’s an Appraisal, and Why Do You Need One?

If you’re using financing to buy a house for sale in Charlotte, your lender will probably require you to have an appraisal done. You won’t get to pick your appraiser; the lender will likely choose from their own pool.

So what is an appraisal for, and what does it tell you?

What is an Appraisal?

An appraisal is a detailed document prepared by an appraiser—someone who’s trained to find out how much a home is worth—that tells you and the lender whether you’re making a solid investment. If the appraisal is lower than the asking price of the home, the lender may choose not to give you a mortgage loan to purchase it.

What’s on a Residential Appraisal Report?

The appraisal you’ll receive is very detailed. It shows how much the home is worth based on its location, features, and the other homes around it. The appraiser evaluates sales data from recent months to help determine how much the home is worth, as well.

You’ll find information such as:

• Property details, such as how many bathrooms, bedrooms, and other rooms it has
• Side-by-side comparisons to other, similar properties
• 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 to Do if the Appraisal is Low

If you’re ready to offer $250,000 for the home but the appraisal says it’s only worth $220,000, you have a few options. You can talk to your Realtor® to find out how you can use the appraisal to negotiate, you can walk away from the deal, or you can ask the seller to improve the value or lower the price.

Your Realtor will help guide you if this happens—there’s no one-size-fits-all answer to what you should do if the appraisal comes in low.

Are You Buying a Home in Charlotte?

If you’re thinking about buying a home in Charlotte or the surrounding communities, we’d love to help you.

Call us at 704-608-2794 or get in touch with a Charlotte Realtor online today. In the meantime, take a few minutes to browse:

• All Charlotte, NC real estate listings
• Luxury homes for sale in Charlotte
• New construction for sale in Charlotte

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