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The price that I'm selling the house for is not the same as the appraisal fee. What should I do?

The property valuation doesn't match the asking price, and what happens then? Motivational and Inspirational

It is not uncommon in many home sales for the price to be much higher than the property's estimated value. It is beneficial for the buyer when a property is overvalued, but problematic when a property is undervalued. What the Alfa Inmobiliaria real estate network's most recent study tells us is that price and valuation only agree in 20% of the cases. houses

Is the buyer at risk in each scenario? What are the advantages and disadvantages? When we're asked these questions, we reply:

It is obligatory to have a mortgage valuation in order to obtain a mortgage.

Real estate consultancy firm Alfa Inmobiliaria reminds us that it is necessary to have a property appraisal certification to obtain a mortgage to buy a home. It's important to measure the actual price of the property, as well as to make sure the terms of sale accurately reflect the property's condition.

You will need to use an independent and specialist appraiser for this. This professional property assessor is charged with the responsibility of ensuring that what is written in the deed (that is, the information about the property in the deed) matches what the property actually has, and thus ensures that the price of the property is calculated using information like the size, location, age, and quality of the building materials, as well as other important factors.

If the appraised value is higher than the sale price, what happens?

According to the Alfa Inmobiliaria study, both the buyer and the bank can benefit from this arrangement. Buyers can receive a higher mortgage so that they can finance the transaction, and the bank can be assured of stable profits over the length of the loan.

Real estate considers that a buyer should have at least 20% of the price of the home saved up, which includes all of the operating and additional expenses. According to the real estate network, the effect of an appraisal on a purchase can last for many years.

There is a proviso to bear in mind, however. As the law of the autonomous will establishes in Spain with regard to private contracts, the sale price of a home must be fixed freely, however, the tax value of the home cannot be less than the price of the home. As a result, buyers may incur a penalty when paying the Property Transfer Tax (also known as the ITP).

The amount at which the appraisal value is lower than the sale price is how much the property is really worth.

What if the situation gets reversed? It can be a problem for the buyer if the appraisal values the property below the agreed-upon price. Your savings will have to cover the decreased amount of money the bank is willing to lend you to acquire the property.

We strongly recommend adding a contingency clause to the purchase contract, as a last resort, if the purchase value turns out to be significantly lower than expected. In addition, asking for a review of the appraisal or requesting a new valuation is possible, as found in the study.

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