Pre-purchase appraisals play an essential role of almost every sale involving real estate. Whenever typical financing is being used to purchase a property, the lender will require an appraisal to determine the current market value of the property. The market value is needed to assist the lender in deciding whether or not to approve the requested loan amount. Appraisals performed for typical financing purposes are held to a high standard. The accuracy of the appraisal is one of the cornerstones of the lending process.
What Are Pre-Purchase Appraisals?
These types of appraisals are usually ordered by the lenders or through a third party Appraisal Management Company (AMC). For typical financing purpose, real estate appraisals are usually paid for by the borrower at the time of closing. Domus Appraisals has been performing appraisals for the purchases of commercial properties and residential properties for over 40 years. We are highly experienced in providing appraisals that meet the standards and requirements of all major lenders.
If private lending (hard money) is being secured to purchase a property, the private lender will obtain pre-purchase appraisals to help determine the limits and terms of the requested loan. Most private lenders will either hire an appraiser that has competently performed appraisals for them in the past or require the borrower to obtain an appraisal. These appraisals are usually paid by the borrower at the time of appraisal. Domus Appraisals has a strong client base of private lenders. Our home purchase appraisals are formatted to meet the individual needs and requirements for each lender.
When there is a sale between family members or friends, the current market value and sale price of the property needs to be established. If typical financing is being obtained, then the lender will order an appraisal. If it is an ‘all-cash’ sale with no lender involved, the buyer and seller will want to establish a fair sale price. When a property is part of an estate or trust, an appraisal is typically needed to ‘benchmark’ the value of the property at the onset or dissolution of the estate. In all scenarios, an independent real estate appraisal is the most reliable way to determine the fair market value of a property.
If You Need a Pre-Purchase Appraisal, Domus Can Help
Purchasing a property is a substantial investment with built-in risks and potential benefits. By obtaining a pre-purchase appraisal, the buyer and seller become more informed about the property and essentially the property’s value. When purchasing a property, place your trust in an appraisal company that has been performing professional real estate appraisals since 1971. Our appraisers are locally based and prepared to provide high quality appraisals. At Domus Appraisals, we understand that time is of the essence when there is a pending sale of a property. We are equipped to deliver competent appraisals within the time frame you need. Call us today at 1-866-939-5979 or fill out a contact form.