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Step 16 to Buying a Home: The Appraisal

Congratulations! If you’ve gotten this far it means you’re past the home inspection period. Now it’s time for the appraisal.

What is the appraisal?  The appraisal is ordered by your mortgage lender to assess the condition, features, and market value of the home.  It is NOT meant to be an indication as far as actual property value.  This is simply meant to assure the bank that the home is worth at least what it is selling at for the purposes of collateral.

Who orders the appraisal?  Your mortgage lender is the person who orders the appraisal, but will call you to get your credit card at some point in the near future to pay for the appraisal. Generally the cost is somewhere between $350 – $500 and is considered part of your closing costs, even though you pay for it up front.

A few tips about the appraisal:

1. You do not need to attend.
2. The buyer’s Realtor does not attend either.  Only the seller’s Realtor attends.
3. Once you pay for the appraisal, it generally takes about a week before the appraiser comes out to conduct the appraisal.  After that it usually takes another week or so for the report to be written. Expect it take about 2 weeks from when you pay for the appraisal until you receive the report.
4. Once the report is written, it’s given to your mortgage lender. Your mortgage lender will then forward it to you and let you know whether the property appraised at the purchase price, below the purchase price, or above the purchase price.
5. If the property appraised at the purchase price, nothing further needs to be done and the closing process will proceed forward as planned.
6. If the property appraised for more than the purchase price, congratulations!  That means we got you a great deal and you’ll have instant equity in your home on the day you move in!
7. If the property appraised for less than the purchase price, we have a problem. That means the bank will only give you a loan for the appraised value.  In this case, we then go back and renegotiate the purchase price down with the sellers, ideally to the appraisal price. If they won’t come down to the appraisal price, then you can choose to either walk away and get your earnest money back or bring the additional funds to closing.  For instance, if the purchase price is $500K, but the appraisal only came in at $475K and the sellers won’t go any lower than $480K you have to decide if you’re going to bring an extra $5K on top of your down payment and closing costs to closing or walk away from the deal.

Questions? Call me at 717.963.0016 or email at homesalesinyourarea@gmail.com.

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Gina Casner

In 2016, I began my tenure in real estate as a licensed Executive Assistant for a leading real estate training coach and subsequently for high-producing real estate teams. I very quickly fell in love with real estate and by 2019, I transitioned into personally helping clients turn their dreams into keys. After dozens of transactions, I have been dubbed the “unicorn hunter,” finding out-of-the-box solutions for clients looking for a home with unique requirements. In addition to managing my real estate practice, I am involved in providing community education on responsible home ownership through my exclusive Path to Home Ownership workshop series. I also am the founder of Chronically Strong, an organization that promotes mental health awareness and suicide prevention in our local communities. I take a holistic and individualized approach to real estate. Buying or selling a home in Central PA can be complex, sophisticated and often a deeply personal endeavor. Your experience should mimic the high level of customer service all of my clients have, while being very specific to your own individual needs. I work with a team of experts to provide a full, complete experience that only a cohesive team can consistently provide. Working with us, you will be given personal attention in every aspect of your home buying and selling experience with the professionalism and consistency of a thoughtful business model. And yes, superior results will follow! On a personal note, I attribute my success not only to my passion for helping clients execute on their next “big move”, but also to my knowledge regarding the psychology of buying and selling. My clientele works in diverse industries with an emphasis on technology, finance, medicine, law, and business. My real estate practice has grown successfully and consistently thanks to the repeat business of happy clients and their introductions to friends, family and neighbors. This track record is only possible because we deliver both results AND an enjoyable experience. Growing up, my family moved frequently all across the continental U.S., but you will hear me say that I am from California because that is the longest place that I lived during my formative years. Moving became a way of life for my family and each place I lived became a part of my story. It taught me that our home truly is the foundation of everything in our lives, and it is this belief that compels me to work hard for my clients when they are buying or selling their home. In many ways, our home becomes a part of our identity, an identity and memory that should be honored. I have been accused of being tenacious and super honest. I like to win (for my clients) but do so with a calm demeanor and a smile. I live in a raised ranch home in Lower Paxton Township with my main squeeze, my teenage son, and our very spoiled dog, Ginger. I have mad faith, and truly believe that each and every one of us is capable of great things. I graduated from Penn State University with a Bachelors’ in Sociology. There is a running joke in my family that every day I go to real estate school because every day my clients teach me something new. I continually invest time, money and thought into the latest sales, marketing and negotiation techniques. Why? Because I believe that you deserve to have the best working for you. I want to live life on my own terms, and am committed to helping you do the same. Would you like to work together? Please reach out. I look forward to hearing from you! Gina

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