If you’re planning to buy a RCFE home, an appraisal is an important step in the process. It’s a professional evaluation of the market value of the RCFE you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the RCFE home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the RCFE home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying an RCFE home.
The National Association of Realtors (NAR) explains:
“An RCFE home purchase is typically one of the largest investments someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical RCFE home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”
When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the RCFE home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the RCFE home is worth.
This is especially critical in today’s seller’s market, where low inventory is driving an increase in bidding wars, which can push RCFE home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their RCFE under the assumption that competing buyers will be willing to pay more.
However, the lender will only allow the buyer to borrow based on the value of the RCFE home. This is what helps keep RCFE prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, we will help you navigate any additional negotiations in the buying process.
RCFE Home Inspection
Here’s the key difference between an appraisal and an inspection. MSN explains:
“In simplest terms, an (RCFE) home appraisal determines the value of an RCFE home, while an RCFE home inspection determines the condition of an RCFE home.”
The RCFE home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. We can help you through this part of the process.
The appraisal and the inspection are critical steps when buying an RCFE home, and you don’t need to manage them by yourself. Reach out to us today so you have the expert guidance you need to navigate through the entire RCFE homebuying process.
If you are considering buying, selling or leasing an RCFE, please call us TODAY to explore your options. We would be delighted to evaluate your business and provide price guidance. We will help you obtain the highest possible price for your RCFE.
Michelle (949) 397- 4506 & Melvyn (949) 500-3630