When it comes to buying a foreclosure, both inspections and appraisals are essential. An appraisal is a requirement from the lender that allows you to know the worth of the property. Lenders need appraisals before offering mortgage loans as they need to make sure they are not lending too much money. Investing in foreclosures can be rewarding as it can result in real estate fortunes that sell below market value. To find foreclosed homes, here are some tips.
When a certified appraiser evaluates the value of a property, they analyze other homes in the immediate area. They take into account homes with similar characteristics such as the number of bedrooms, bathrooms, and more. If one of those homes was foreclosed, its value may not be the same as yours. This requires the appraiser to adjust the value to reflect some of the differences found.
