When you browse through Boston North Shore homes for sale online you shouldn’t base your decision solely on price and location. If you do you might be getting an overvalued or undervalued home ending up with a bad investment. There are many factors to consider when choosing homes for sale.
Considerations When Choosing Homes For Sale
The Importance of a Home Appraisal
The appraisal is an important process as it provides a buyer with an unbiased opinion of a home’s value. Lenders do not provide credit to homebuyers without a professional home appraisal. They also always use it when a homeowner decides to refinance his property. When buying or selling a house the appraisal is necessary to determine whether the house’s contract price is right for its features, location and condition. In case of refinancing, a home appraisal assures the creditor they are not lending more than the property’s true value.
The value of the house serves as collateral if a borrower defaults on his loan. The lender will sell the home to recoup the losses they may incur. Appraising the house protects a bank or any lender in the worst-case scenario.
That is why when choosing Boston North Shore homes for sale you need keep home appraisals and home inspections in mind setting aside a sufficient amount of funds. The additional cost and longer waiting time is necessary as it protects both you and the lender.
The Difference Between a Home Appraisal and Inspection
The appraisal and inspection are both important when buying a home, but they are two different processes. Some people mistake one for the other or assume that one would be enough. However, an inspection is not a substitute for an appraisal, and vice versa.
One of the key differences is that an appraiser formulates an opinion about a home’s value for the creditor to determine the amount they should lend. An inspector, on the other hand, provides important information about the condition of the house to a buyer. The former pays closer attention to the value of a home, while the latter focuses on a property’s condition.
An appraisal and inspection are both important in the process of buying or selling a home. Knowing the difference and their importance enables you to make an informed decision.
See more articles pertaining to Boston North Shore homes for sale in the two sections of articles on Boston North Shore Real Estate and Boston North Shore Homes for Sale just below Boston North Shore Real Estate Categories in the column to your right.