Property Appraisers

Why Do Lenders Require Home Appraisals?

Third party are licensed lenders that require home appraisals to get a clear idea of the market value of a home. The assessment needs to be close to the actual contract price to reduce the risk of the loan going on default. Any significant difference in these amounts can lead to issues with a loan being approved and may incur additional costs to either the buyer or seller.

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Loan-to-Value (LTV) Ratio

The loan to value (LTV) ratio is how much the home buyer is borrowing from a lender based on the property's appraised value. The LTV ratio is calculated by getting the mortgage loan balance and dividing it by the estimated value of the property. For example, a home priced at $300,000 in which the buyer is taking a loan of $250,000. The loan amount is divided by $300,000 then multiplied by 100 which would be 83.3% in this case.

The higher this ratio is, the greater the risk for the lender. This is because the home buyer makes a low down payment meaning they have less equity in the property and are more likely to default on their loan. When this happens, the lender may have difficulty earning back the loan they gave out from the sale of the property. Home buyers with high LTV ratio usually get higher mortgage rates.

Can You Hire an Appraiser?

The short answer would be no. Lenders have a list of third party appraisers that they trust, and they are unlikely to work with someone they're unfamiliar with referred by a customer. The lender typically orders the home appraisal so that they have an accurate value of the property you are buying. Usually, after a work order is issued, there is no further communication between the lender and the appraiser until they release the results of the appraisal.

Appraisal Cost

A home appraisal on average ranges from $300 to $400 depending on the size of the property to be reviewed. The cost is typically paid by the buyer and is part of their closing costs, which is in the completion of the home purchase.

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Top 10 Property Appraisers in Bradenton, Florida

If you're in the market for a Home Appraiser, you can check out our list of the top 10 companies in the city. Remember that appraisals have a scientific process and a subjective factor which results to thousands of dollars of difference.

1. Martin Appraisal Services, Inc.

2. My Florida Home Appraisal

3. R.E. Appraisal Associates of SWFL, Inc.

4. Cranwood Appraisals, Inc.

5. Gulf Breeze Appraisals

6. Pearl Appraisal Services

7. Greber Appraisal of Florida, LLC

8. Peters Appraisal Services

9. Atlas Appraisals

10. Priority Home Appraisal

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Let Me Help You Find Your Bradenton, Florida Home! If you are a buyer, it is important to have the assistance of a Buyer's Agent to represent you during the transaction. If you need additional assistance or would like to schedule a showing, contact our office at 941-779-5617. ************************************************************************************

POSTED BY

Heather Goldin

"Your River Strand Realtor"

Re/Max Alliance Group

8027 Cooper Creek Blvd,

Sarasota, FL 34201

941-779-5617