Home appraisals play a crucial role in the home buying process, acting as a safeguard for both buyers and lenders. When you decide to purchase a home, the price agreed upon between you and the seller isn’t always reflective of the property’s true market value. This is where an appraisal comes in.
A home appraisal is an unbiased assessment conducted by a licensed appraiser who evaluates the property based on various factors, including its size, condition and location, as well as recent sales of comparable homes in the area[1]. This process ensures that you, as a buyer, are not overpaying for your new home. If the appraisal comes in lower than the purchase price known as an “Appraisal Gap” it can provide leverage for negotiation or even allow you to walk away from the deal if you’ve included an appraisal contingency in your contract[3].
For lenders, appraisals are essential as they confirm that the amount they are willing to lend aligns with the home’s actual value, protecting them from potential losses[3]. If the appraisal is too low, it can delay or derail the transaction, making it vital for all parties involved to understand its importance.
Now, let’s talk specifics. Oklahoma and Kansas home appraisals usually costs between $350 and $700 for a single-family home[2][4]. Factors like the size of the property and the type of loan can affect these costs. For example, larger properties or government-backed loans might require more detailed appraisals, which can be pricier.
In essence, home appraisals not only help buyers make informed decisions but also ensure that lenders are making sound investments. This process is a critical step in the journey of homeownership, providing peace of mind and financial security for everyone involved.
Contact one of our Mortgage Representatives today to assist you in meeting your homeownership goals!
Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. With approved credit. Terms, qualifications and other restrictions apply. Member FDIC, Equal Housing Lender. RCB Bank NMLS #798151.
Sources:
[1] https://www.amerimacmanagement.com/about/blog/what-is-the-importance-of-the-appraisal-process/
[2] https://www.houzeo.com/blog/how-much-is-a-home-appraisal-in-kansas/
[3] https://www.forbes.com/advisor/mortgages/how-home-appraisals-work/
[4] https://www.houzeo.com/blog/how-much-is-a-home-appraisal-in-oklahoma/
