Real Estate Blog

Don’t Forget These Things When Buying a Home

May 3rd, 2007

Think about These Carrots When Buying a Home

No matter what you do, there will always be a lot of things to think about, a lot of issues to consider, and a lot of matters out of your control when buying a home. You’ve surely asked yourself why do I need a home appraisal? What does that do for me when I want to buy a home? You want to know? We’ll tell you, just keep reading.

Get the Right Stuff When You’re Buying a Home

When you need a mortgage for your home buying needs from a bank, credit union or lending company, it is more than likely that the lender will want and need a home appraisal before you get any money to buy that home. From the perspective of the lending company, they want to know that if you stop paying your mortgage, they will be able to sell the home and get their money back. The home appraisal will give a baseline price of what the property is worth, and be able to tell you what it should be sold for on today’s market.

Are Comparative Market Analysis and an Appraisal the Same Thing When Buying a Home?

Although the results will be complimentary to each other, they are not the same thing. A home appraisal will tell you the approximate market value of the home you’re interested in buying, but a comparative market analysis will compare your the home to usually three other similar homes. Based on the comparison, you will have a better idea of where the home you’re interested in lies in the grand scheme of things. Also, a comparative market analysis is completed by a real estate agent, whereas an appraisal is completed by a registered appraiser.

Entry Filed under: Buying Tips