When making an offer, purchasing a house with cash has its benefits – with no lender involved there is less paperwork, less red tape, and fewer hoops to jump through, however, paying cash doesn’t mean you want to overpay for the purchase of your new property.
Lenders get an appraisal completed on a property they are loaning on to protect their investment. The lender does not want to lend more money on a property than it is worth. The same idea applies to buyers paying cash, only with cash, you are operating as the bank.
You have looked at the property, you love the location, the layout, the amenities and have decided to make an offer on the property. Your offer is what one person thinks the home is worth – YOU. That is where an appraisal comes in. Getting a 3rd party with no “dog in the fight” to give a professional opinion of value will only protect you in the long run. Not only will this typically include property measurements** (lets make sure you are getting the square footage you think you are getting), but the appraiser will compare the property to at least 3 sold properties in the neighborhood. Why is it important to use multiple sales in a report? That supports MARKET VALUE – with multiple sales used, it shows that multiple transactions have occurred that support the opinion of value – hopefully this is at or above your purchase price and what you think the property is worth.
Lenders protect their investments through getting an appraisal completed on the property they are lending on. In addition to getting a home inspection (to ensure the home is in the condition you believe it to be in), I recommend getting an appraisal report to ensure the home is what you believe it to be worth. We have multiple products to achieve just that. Give me a call at 806-470-2272, or click one of the “work with us” links found in the website to discuss options available to you.
Eric Geiser is a Certified Real Estate Appraiser with over 18 years of experience in the Lubbock Market. He holds an SRA designation through the appraisal institute and a HMS certification (home measuring specialist). Give Eric a call today at 806-470-2272 to discuss what options are available for you.
**depends on scope of work
**see blog post on measurements