There is a lot to consider when selling a house, and one of the steps in this process is often the appraisal. But is an appraisal actually mandatory or just recommended? In this article, we'll dive into the world of home appraisal when selling to answer this question.
Is an appraisal mandatory?
In most cases, an appraisal is not required by law when selling a property. Still, an appraisal may be necessary to meet certain requirements of a mortgage lender, especially if the buyer needs a mortgage. It may also be that as a seller you want to get a realistic picture of what your home is worth in the current market.
When is an appraisal recommended?
An appraisal can provide a lot of insight into the value of your home and can therefore be useful in negotiations. It can also protect you as a seller from making choices that you later regret, such as setting your asking price too low. An appraisal can therefore be recommended in many cases, even if it is not strictly necessary.
The role of the mortgage lender
If the buyer needs a mortgage, the mortgage lender will often ask for an appraisal report to assess the risks. In that case, an appraisal can be considered 'mandatory', but the obligation then comes from the side of the mortgage lender, not from the law. This is also an obligation for the buyer and not for the seller.
Other ways to determine the value
In addition to a professional appraisal, there are also other ways to get an estimate of the value of your home. For example, you can use online tools or use the WOZ value as a guideline. These methods are often less accurate than a professional appraisal.
An appraisal is usually not required by law when selling your house. However, it is often advisable to get a clear picture of what your home is worth. In addition, it may be a requirement from the buyer's mortgage lender. That's why it's good to know your options and consider whether an appraisal is wise in your situation. It can offer you a lot of insight and certainty in the sales process.
