If you’re buying a loft for sale in DTLA, your lender will require an appraisal – but what is an appraisal, and why does the lender want one?
What is an Appraisal in Real Estate?
A home appraisal is an unbiased estimate of a home’s fair market value. Your lender will require it because it wants to be sure that it is lending you the right amount of money. No lender wants to give you more than a home is worth because if you default on your payments (stop making them), the lender’s going to be stuck with your condo or loft – and it’s going to have to sell it. The last thing a lender wants is to sell a property at a loss.
Who Appraises a Loft or Condo in DTLA?
Your lender will choose your appraiser – you don’t get to pick. That’s because the lender wants to use someone it trusts to provide a fair estimate of the home’s value.
You still have to pay for the appraisal, though.
What Does an Appraiser Look For?
An appraiser will look at the condo or loft’s condition and compare it to the value of other homes in the same or a similar area.
Who Cares About Appraisals?
If you’re selling a home, you want the appraisal to come in high – at least equal to, but preferably higher than your asking price.
If you’re buying a home and the appraisal comes in low, you can either offer the seller less money for the property or move on and start looking at other lofts and condos.
Are You Buying a Condo or Loft for Sale in DTLA?
If you’re thinking about buying a condo in Los Angeles or a nearby community, call us at 213-254-7626 or contact us online.
While you’re here, check out our:
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- Homes for sale in Little Tokyo
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- South Park – Downtown homes for sale