Utilizing house appraisal services is an essential part of home buying, but because they're not a required part of the process, many people forgo this beneficial step. It would be best, however, if you never buy a home without first having home appraisal services, and here's why.

It Allows You to Protect Your Investments

According to HomeLight, an astounding 7% to 11% of homes appraised come back under the contract value. This means the seller is asking for more than the home is worth, and you could find yourself upside down on the mortgage. When you are upside down on a mortgage, you owe more than the home is worth. In other words, it means the house could be considered a risky investment.

The Bank Typically Will Require One

Major lenders don't want you to skip the home appraisal process. Most banks will still insist that a home be appraised before signing off on a mortgage. Appraisals protect the bank and the buyer so that everyone involved remains in a stable financial agreement. The true value of a property must be assessed during the buying and selling process. Banks don't want to make loans on properties that are not valued at the contract price. Banks can be very flexible and offer mortgages up to 100% of the value as long as the property's value is well-documented. Appraisals provide transparency in real estate transactions and ensure everyone is on the same page.

There Are Benefits for the Sellers as Well

House appraisal services don't only support the buyer and the bank, but also support the seller as well. A seller needs to know the true market value of their property. In many cases, an owner will undervalue their own property simply because they don't realize its worth. An appraisal can reveal the true market value of a property. Many sellers have found that taking the lead with home appraisal services is better than having the buyer's bank manage the appraisal. An in-depth appraisal and market analysis of your area's real estate can prove extremely advantageous.

A home appraisal is something any buyer or seller should insist on. Learn more about the benefits of home appraisals and how they can assist you in your real estate choices by giving Anthony Appraisers Inc a call today!