Basics Of Real Estate Appraisals In Pennsylvania

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Whether you’re the buyer or the seller, an appraisal is important if the purchase is going through a lender. Lenders require an appraisal because they typically only lend a certain percentage of the purchase price, which is driven by the appraised price or appraised value of the property.

As the buyer, you’re still able to purchase a property at a price exceeding the appraised value, but you should be entering into that transaction knowingly.

If you’ve offered $20,000 more than the appraised value and it’s accepted by the seller, the lender will only lend 80% of the appraised price. You can quickly see how much cash you’re going to need at the time of purchase even when you’re financing.

It isn’t necessarily recommended that you get an appraisal for a property until you have a serious intent to purchase. While the appraisal is going to be an expense, it may protect you from paying more than the property is worth.

An appraisal can very quickly change what your transaction is going to look like. A property appraisal lower than expected may change a transaction from being $100,000 cash at close versus $80,000 with no cash. It can change the structure of your loan, so it’s very important to get that appraisal to see what the numbers are going to be.

More Information

• The Benefits Of Having A Real Estate Attorney During The Closing Process
• Closing A Real Estate Transaction In Pennsylvania
• A Brief Overview Of Escrow And Agreements
• Understanding Your Title And Title Insurance
• Getting Started: Preparing To Buy Or Sell Real Estate
• Hiring The Right Pennsylvania Real Estate Attorney
• Introduction To Attorney Thomas McGlaughlin | North Star Legal Services LLC
• Financing Options For Development Projects
• Financing A Real Estate Transaction In PA
• Documents In A Real Estate Transaction
• Real Estate Title Report In Pennsylvania
• The Estate Planning Documents That Are Necessary Under Pennsylvania Laws To Help Family Or Other Loved Ones To Make Medical And Financial Decisions In The Event Of Incapacitated Or Death
• Why Everyone Needs To Do At Least Some Form Of Estate Planning In Pennsylvania
• The Use Of A Standard Agreement Or Contract For The Sale Or Purchase Of A Residential Property In Pennsylvania
• Clear Titles And Why They Matter
• How A Real Estate Attorney Assists With The Purchasing Of Residential Property In Pennsylvania
• Attorney Thomas McGlaughlin’s Experience In Real Estate Both As An Attorney And Prior To Working In This Arena

Can A Broker Do An Appraisal In Pennsylvania?

In Pennsylvania, when it comes to real estate, there are two important roles: brokers and appraisers. A broker is a professional who helps people buy or sell properties, while an appraiser specializes in determining the value of a property.

While a broker can provide a general idea of a property’s value based on their knowledge of the market, as per state law, they are not eligible to perform an official appraisal. An appraisal requires a more in-depth analysis and is typically conducted by a licensed appraiser.

Appraisers have specific training and certification to assess a property’s value objectively. They consider the property’s condition, location, comparable sales, and other relevant aspects. Their appraisals are often used for important purposes like determining a fair selling price, obtaining a mortgage loan, or settling an estate.

So, while a broker can provide general guidance on a property’s value, a licensed appraiser is usually needed for an official appraisal that holds legal weight. It is critical to consult with a qualified appraiser if you require an accurate and professional assessment of a property’s value in Pennsylvania.

When A Seller Would Want To Obtain An Appraisal

The appraisal is typically obtained by the buyer, since it is more to their benefit, but there are circumstances in which the seller may obtain their own appraisal. One such circumstance would be if the property is unique or higher-end.

A good example of a situation where the seller would want to obtain an appraisal would be if the property is farmland, has 40 acres, and is zoned for agriculture. You can certainly live there, though the ‘agricultural’ zoning would prohibit any other use of the land. How do you value that property, though, when there aren’t a lot of comparable properties in the area? A seller would want an appraisal to have a better idea of the value of their property and to determine if an offer is adequate.

With the guidance of a skilled attorney for Real Estate Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy.

For more information on Real Estate Law in Pennsylvania, an initial consultation is your next best step. Get the information and legal answers you are seeking by (717) 990-7178 today.