Appraisals and the Value of the Home You’re Purchasing

An appraisal is basically an evaluation by an independent professional. It could an appraiser to determine an opinion of the value of the home. The appraiser will look at recent comparable sales and market conditions to determine the value of a home in order to help support the agreed upon sale price. So let’s say the house you were looking to buy is $250,000. If you’re lucky, it may appraise for higher than what you are going to pay for it and that just means you get instant equity on the day you close. Suppose however the value comes in lower than the sales price. Well, this does allow you to possibly renegotiate with the seller, which may reduce your loan amount and save you money on your monthly payments. Appraisers also look at the condition of the home. Some programs do have much more strict guidelines on condition than others.

If you have questions, let me know.

Does it Make Sense to Take Time Off From Home Shopping?

If you are shopping for a home today, you know it’s really hard work. You may not find something right away and it’s super easy to get fatigued. Some buyers may get discouraged and say, “Let me take off a few months. Maybe I’ll come back in six months and see where everything’s at.” Well here’s the thing, while you can take some time off, the market isn’t and it is continuing to appreciate… and it’s hot right now in Clark County and in the Portland area.

The forecast appreciation is approximately 2% in just the next six months. Let’s quantify that. If you’re looking at homes priced at about $355,000 today, that home would be worth $7,100 more in six months. And if you were planning on putting the same amount down for percentage-wise, you would have to bring in more down payments since a home is now more expensive.

And what about those interest rates? Some folks think that rates aren’t as low as they could go. Well, while they’re at really attractive levels right now, does it make sense to wait for rates to go down further? They may not. They may go the other way. So, the monthly savings with a lower rate may be nice, but it is dwarfed by the missed appreciation and amortization. And it could take many years to recoup what you would have lost. Should rates drop significantly, we can always refinance you in the future. So stick with it, keep shopping, and you will find your home.