April 27, 2007, Newsletter Issue #104: The Appraisal and the Purchase

Tip of the Week

If you are buying a home, one of the key components to securing financing will be the appraisal of the property you want to buy. The bank needs to confirm that you are buying the home for a reasonable price and that if they needed to sell it because of foreclosure, they could get their money back.

The appraisal is based on the establishing the fair market value of your home. This means assessing the square footage, any important features of the home, like fireplaces, garages, bathtubs, number of bedrooms and the lot size and then comparing your home to like homes that have sold in the area. Obviously it's far better to have your home appraise higher than the price at which you are buying. If the appraisal doesn't meet the standards of your lender, you may be in for a headache.

In some cases you can renegotiate the price with your seller, but in many cases you are just out of luck. One way to ensure that you won't lose your deposit is to make a note in the purchase and sale agreement that you can back out of the deal if the house does not appraise properly. Do your homework and look at properties in the area - this will help you make sure you're choosing the right home and getting a good value.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Exclusive Sponsor

Find your perfect Miami Home through Miami Estate and Condos!

http://www.miamiestatesandcondos.com

Not finding the advice and tips you need on this Miami Real Estate Tip Site? Request a Tip Now!


Guru Spotlight
Jolyn Wells-Moran