The latest statistics are out. The Realtor Association of Sarasota and Manatee County reported that in April 2019 of all the single family home sales in Manatee County 70% of buyers got a loan to pay for their new home. Whether you’re looking to buy or sell a home in River Strand this information is important because the property needs to appraise.

If you are looking to sell your home, we are going to discuss the importance of reviewing the sold history in the last six months to compare to your property and price it appropriately so that when you get an offer, you as a seller, can feel confident that it will appraise. So much time and effort can be wasted when a seller and buyer agree to an overpriced amount which falls through in the end. Rest assured, I will meet face to face with the appraiser and discuss the latest comps and be sure they are aware of all that River Strand and your home specifically offers.

On the flip side, as a buyer, I will be sure to help you review the recent sold data to help you arrive at a starting point to begin the negotiation process with solid facts. Let’s talk appraisals 101…When a homebuyer applies for a mortgage, one of the expenses that they would have to pay for is the cost for having the property appraised. A home appraisal performed by a qualified professional would confirm the value of the property and help the lender to determine the maximum amount of money that can be loaned to the homebuyer. Keep in mind that a home appraisal is not the same as a home inspection. While an appraisal is required to be considered for a home mortgage, a home inspection is not.

Why is a Home Appraisal Required by Lenders?

Third-party, independent, licensed property appraisers are hired by lenders to provide them with a market price valuation of the home being purchased. The lender needs this information to assure them that the property that they are lending against can stand up to possible foreclosure and that the lender can get their money back. The appraisal should at least be equal to the contract price. If the home’s appraised value is less than the contract price, the homebuyer or the seller would have to come up with the difference to move forward with the deal. Usually a lender is only going to loan up to 80% of the appraised value of the property. Even if the property appraises at the agreed upon purchase price but the buyer is putting down less than 20% there will be a shortfall which the buyer needs to bring as cash to closing.

What is Loan-to-Value (LTV) Ratio and Why is It Important?

The loan-to-value (LTV) ratio is how much the homebuyer is borrowing from a lender as a percentage of the home’s appraised value. The LTV ratio is calculated by taking the mortgage loan balance and dividing it by the appraised value of the property. For example, if the home being purchased costs $300,000 and the homebuyer is taking out a $250,000 loan, the loan amount which is 250,000 is divided by 300,000 then multiplied by 100 to get the LTV ratio which is 83.3%.

The higher the LTV ratio, the greater the risk for the lender. Why? Because when a homebuyer makes a low down payment, they have less equity (or ownership) in their home and are more likely to default on the mortgage loan. If the homebuyer is unable to keep up with mortgage payments and they are forced to foreclose, the mortgage lender may have a difficult time earning enough money from the home sale to pay off the remaining loan balance. This is why homebuyers with high LTV ratios usually have to deal with high mortgage rates. The “safe” LTV ratio is 80%, as most lenders expect borrowers to pay at least 20% of their home’s value upfront as a down payment.

Can the Homebuyer Hire Their Own Appraiser?

The short and straightforward answer is no. Even if the homebuyer decides to hire their own appraiser, the report will not be considered by the lender. It is the lender who orders the home appraisal to determine the property’s value, and it is usually through a third party. Aside from issuing the work order, there is no communication between the lender and the appraiser. Once the appraiser is done with the physical inspection of the home and research of the local market, they prepare the appraisal report and this is submitted to the lender, who in turn provides a copy to the homebuyer.

How Much Does an Appraisal Cost and Who Pays for It?

On average, the cost of a home appraisal ranges from $300 to $400, depending on the size of the home and where it is located. Generally speaking, the home appraisal is paid for by the buyer and is added to their closing costs which are paid at closing or settlement.

Top 10 Home Appraisers in Bradenton, Florida

While you cannot choose your appraiser as a buyer, here is a list of local appraisers because some home sellers may want an appraisal done before they list their home. Keep in mind that while there is a science behind appraising a property, it is also subjective and appraisals can vary by thousands of dollars.

Martin Appraisal Services, Inc.

Martin Appraisal Services, has been providing residential and commercial real estate appraisals in Manatee and Sarasota County since 1996, covering the cities of Bradenton, Palmetto, Lakewood Ranch, Parrish, Anna Maria, Holmes Beach, Bradenton Beach, Cortez, Ellenton, University Park, Myakka City, Sarasota, Longboat Key, Lido Key, Siesta Key, Osprey, Venice, and Englewood. Over the years, they have built a solid reputation for high quality work and fast turnaround times.

My Florida Home Appraisal

My Florida Home Appraisal is a leading provider of real estate valuations for the mortgage lending and non-lending marketplace as an independent, full service real estate appraisal company. Since 2002, the firm has been servicing Tampa, Saint Petersburg, Bradenton, Clearwater, Largo, Zephyrhills, Spring Hill, Brooksville, and surrounding areas. Satisfied clients recommend them for their expertise, professionalism, and timely delivery.

R.E. Appraisal Associates of SWFL, Inc.

Lora Keller of R.E. Appraisal Associates of SWFL has been appraising in Southwest Florida since 1997 and in the real estate industry for almost 30 years. Lora takes pride in serving nine counties in Central and Southwest Florida, approved by more than 300 banks and lending institutions all over the country. She is qualified and experienced to provide quality and expert appraisal reports.

Cranwood Appraisals, Inc.

Since 1998, Cranwood Appraisals has been providing mortgage lenders and consumers high-quality appraisals on all types of real estate in Manatee County. Aside from their expertise and professionalism, they keep abreast of local real estate trends in Manatee County and stay current on valuation techniques through accredited courses to ensure that they are consistently delivering reliable home valuations for clients.

Gulf Breeze Appraisals

Gulf Breeze Appraisals has been providing service in Bradenton, Sarasota, Port Charlotte, Holmes Beach, and other nearby locations since 2003. They are committed to delivering superior quality and excellent customer service, specializing in estate settlement appraisals and pre-listing appraisals.

Pearl Appraisal Services

Pearl Appraisal Services has been in the appraisal and real estate business since 1992, specializing in pre-listing, purchase market value, tax appeals, private mortgage insurance removal, land value, reinstatement of a home equity line of credit due to bank freeze, estate, and bankruptcy. Clients attest to their professionalism, efficiency, and expertise. They also deliver reports electronically.

Greber Appraisal of Florida, LLC

Greber Appraisal is a family owned and operated business that has been providing Bradenton, Sarasota, and surrounding areas with excellent service, safety, and quality since 1986. They have built customer loyalty through their professionalism and expertise. To this family, no job is too small or too big, they offer the same level of exceptional service and guarantee satisfaction to each and every client.

Peters Appraisal Services

Peters Appraisal Services, owned by Edward Peters – a leading residential appraiser in Apollo Beach, has been in providing excellent, professional residential real estate appraisals to Bradenton and other surrounding areas since 1992. Client testimonials attest to their responsive, honest, direct, and efficient service.

Atlas Appraisals

Atlas Appraisals has a proven track record of reducing lenders time, efforts, and costs in managing the appraisal process. They offer convenient and fast service to clients through their online appraisal ordering, automatic report status updates, and electronic delivery of the final product at very competitive rates.

Priority Home Appraisal

Priority Home Appraisal specializes in unique properties, such as acreage and waterfront. Owner Tom McNulty established this firm in 2011, providing superior quality appraisals to Manatee County, Sarasota, and South Hillsborough County with an excellent record of on-time service. Tom is state licensed, insured, and FHA approved. He is also a member of the Manatee County Association of Realtors.

Still looking for your dream home? I will be more than happy to show you the most amazing houses in River Strand! Want to talk about selling your River Strand home or condo? Feel free to give me a call at 941.779.5617 or send me a message using the form below: