You are buying a home but aren’t sure if you need to get an appraisal. Is this a step that just can be skipped?

San Diego Realtor Matt Huneycutt shares the importance of an appraisal can have for when buying a home in the San Diego Market. If you have questions reach out directly to Matt Huneycutt at 619-993-8144

I want to share with you the importance of appraisals when buying a home in the San Diego market. I'm Matt Huneycutt with the Whissel Realty Group. Appraisals are an important step of the home buying process.

Anytime you purchase a home with a loan, the bank's going to require an appraisal on the property to make sure the value matches. They're not going to give you a million dollar loan for a $200,000 condo. Right now, we're going through a major transition, and we're experiencing some growing pains.

There are more buyers in the market than ever, and fewer homes for sale than ever. And that's causing home prices to rise at an unprecedented rate. Appraisals are rear facing in nature. They look backwards into the past, 6 to 12 months. A home that sold 6 months ago is not even in the same price bracket as today.

If we find ourselves in a low appraisal situation, we have three options.

Option One

We can bring extra cash to the table to make up the difference between the loan amount and the purchase price amount.

Option two

The seller can reduce their purchase price down to the appraised value.

Option Three

Or what most commonly happens is we meet somewhere in the middle.

To learn more about this, and other strategies to win in this competitive market, reach out to me today. I'm Matt Huneycutt, thanks for watching.