David Deem 714-997-3486 Dave@DeemTeam.com Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s because high buyer demand and low housing supply are driving intense competition and leading some buyers to consider waiving those contingencies to stand out in the crowded market. But is that the best move? Buying a home is one of the most important transactions in your lifetime, and  it’s critical to keep your best interests in mind.  Here’s a breakdown of what to expect from the appraisal and the inspection, and why each one can potentially save you a lot of time, money, and headaches down the road. Home Appraisal The home appraisal is a critical step for securing a mortgage on your home. As  Home Light  explains: “. . . lenders typically require an appraisal to ensure that your loan-to-value ratio falls within their underwriting guidelines. Mortgages are secured loan...

  David Deem 714-997-3486 Dave@DeemTeam.com It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home prices are appreciating at near-historic rates, and that’s creating some challenges when it comes to home appraisals. In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for  CoreLogic , explains it like this: “ Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support.  This difference is known as ‘the appraisal gap . . . . ’” Why does an appraisal gap happen? Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture ...

  David Deem 714-997-3486 Dave@DeemTeam.com In today’s real estate market, low inventory and high demand are driving up home prices. As many as  54%  of homes are getting offers over the listing price, based on the latest  Realtors Confidence Index  from the  National Association of Realtors  (NAR). Shawn Telford,  Chief Appraiser  at  CoreLogic ,  elaborates : “The frequency of buyers being willing to pay more than the market data supports is increasing.” While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the  appraisal  for the house. It’s called an  appraisal gap , and it’s happening more in today’s market than the norm. According to recent data from  CoreLogic ,  19%  of homes had their appraised value come in below the contract price in April of this year. That’s  more than double  the percentage in each of the tw...

  David Deem 714-997-3486 Dave@DeemTeam.com If you’re planning to buy a home, an  appraisal  is an important  step  in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a  home inspection , which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home. Home Appraisal The  National Association of Realtors  (NAR)  explains : “A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised!  An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually...

  David Deem 714-997-3486 Dave@DeemTeam.com By  Bill Gassett The home appraisal process can be a stressful time, whether you're buying or selling a property. It's the job of the appraiser to find the fair market value of the home. If their findings don't match the buyer's offer, there can be delays in the transaction. But if you know what appraisers look for, you might be able to prevent your house sale from running into problems. The appraisal will be one of the bigger hurdles to clear in your sale so it will be important to have an understanding of how they work. Pricing your home accurately from the start will lead to the best results. In order for your home appraisal to get the results needed for the sale to close, it's important to know what appraisers look for: Appraisers Look at External Factors Around Your Home The appraiser that visits your home will have been certified to operate in the state. They'll probably be using the Uniform Residential Appr...