Pre Purchase Valuation
While an appraisal is required after you make an offer to purchase a home if you are using a loan, obtaining one before you make an offer is an intelligent strategy that may save you from paying more than is necessary.
Having an appraisal in your back pocket while negotiating a contract price can arm you as a buyer with adjustments an appraiser made for defects in a property. A homeowner obviously has a bias, but the buyer may fall in love with a home and now have a distorted favorable view. If agents are involved, they will receive commissions for a sale, potentially leaving an appraiser as the only objective party. Use that objectivity to your advantage before making an offer.
A Pre-Purchase Appraisal report will also include:
-
A Fair Market Value
-
A Good Deal Value that you might start use as a starting number
-
Analysis of the property compared to other recent sales
-
Analysis of the property compared to other Listings available
-
Analysis of the adjustments made for and against the property