| Most lenders require you to purchase a home | | | | mortgage amount, the lender might decide that |
| appraisal before the mortgage can be closed upon. | | | | the property is being sold at too high of a price |
| The appraisal will tell you how much the appraiser | | | | for the worth of the property and not allow the |
| believes a piece of property is worth. The | | | | buyer to acquire the loan. |
| appraisal will look at things like the age of the | | | | Your neighborhood side-by-side comparisons |
| home, the condition of the property, and the | | | | Take a look at the other properties in the |
| condition and values of other pieces of property | | | | neighborhood. These comparisons will be made in |
| in the same area. | | | | detail in the appraisal. You'll be able to look at |
| The appraisal amount | | | | other properties in your neighborhood with a |
| The appraisal amount is the most important | | | | similar number of bedrooms, bathrooms, and |
| aspect of the appraisal report. Your appraisal | | | | square footage, and how much those homes are |
| amount can make or break your sales agreement | | | | worth. This neighborhood side-by-side comparison |
| and mortgage. If your home comes in valued less | | | | is the main indicator of how much your home is |
| than the sales price of your home, the buyer of | | | | valued at. |
| the home can decide that he won't pay as much | | | | Negative adjustments |
| for the property and the sales price can be | | | | Negative adjustments on the property are things |
| renegotiated. If the home comes in valued at | | | | like fewer than a normal number of bathrooms |
| greater than the sales price, the buyer might just | | | | for a house's size or a one-car garage when most |
| be getting a great deal. | | | | homes in the area have a two-car garage. If you |
| In addition, your mortgage lender decides whether | | | | look at the negative adjustments on your home, |
| to allow you to borrow money based on the | | | | you may decide you want to do some remodeling |
| appraisal. If the appraisal amount is less than the | | | | to increase the home's value. |