determines how much money may be borrowed and under what terms. For example, the Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. The assessed value is the amount the local or state government has designated for a specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current value. Should We Get a Home Inspection? I highly recommend you get a home inspection before you start to market your home. This way, you will find out exactly what you have to do before you get into a contract. Some of the biggest issues that come up are after the buyer gets their home inspection. Be ahead of the process. What is the Selling Process? The selling process can be divided into five phases, and the home inspection is one of the five.
1. The Offer or Contact Phase. 2. The Appraisal Phase. 3. The Escrow Phase. 4. The Home Inspection Phase. 5. The Closing Phase.
1. The Offer or Contract Phase In this phase, having an agent who is a good negotiator on your side is imperative. If your agent is a Certified Negotiator this is a big plus for your side. A Certified Negotiator has the education and experience to get you the most money if you are selling or the best price when purchasing a home.
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