Home appraisal: Why is it so important?

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The appraisal of the home serves to know in the most precise way the real value of the apartment we acquire. But beyond knowing whether the purchase price is above or below the real value of the apartment, the appraisal is a fundamental piece when it comes to obtaining a mortgage . When we apply for a mortgage, the appraisal of the home is an essential requirement to sign it. Depending on the result of this, the bank will be able to finance more or less amount. And that is why it is so and so important.


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Appraisal, housing and mortgage
When requesting a mortgage loan, banks have two reference values ​​to determine what amount they can finance. The purchase and sale value and the appraisal value . If we focus on the purchase and sale value, most banks do not usually give more than 80% . However, at Housfy we can get up to 100% . However, to obtain such financing, the appraisal value must also be taken into account . And there is no bank that gives you more than 80% of this value. At Housfy we help you calculate the value of your home with our free online home appraisal tool  with cadastral reference.


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So that we understand each other. Let's imagine that we only wanted to finance 60% of the purchase and sale value of an apartment. If 80% of the appraisal value is less than this 60%, the bank will not finance it. This does not mean that it is impossible to Romania Mobile Number List obtain financing for 100% of the purchase and sale value, but it is only possible in cases in which 80% of the home appraisal is equal to or greater than the purchase and sale value.

Housing appraisal below the purchase and sale value
What happens when the home appraisal comes out for a lower value than the purchase price? As we have said, the bank will only be able to finance us a maximum of 80% of the value of this appraisal . The rest up to the entire purchase and sale value will have to be the buyer's own contribution . Whether it is your own savings, inheritances or a loan from a family member.



If a home is appraised below the purchase price , it is most likely a symptom that the market is inflated in that area. Just because the market value of the home is above the real value does not mean that the market is doomed. It may be that, despite the high prices, there is still demand willing to buy . Whether due to the current economic situation or other short-term interests, an inflated market can survive, but in the long term, it is not viable . We saw it with the real estate and speculative crisis of 2008 and everyone already knows the consequences it had.

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Housing appraisal above the purchase and sale value   
In large cities, more than in areas with less demand, it is normal for the appraisal value of the home to be higher than the purchase and sale value . In most cases, 80% of the home appraisal is usually between 80 and 95% of the purchase and sale value. However, it may be the case that the 80% appraisal is higher than the sale price of the home.