5 Myths About The Home Buying Process

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7 minute read

By Jason Gelios REALTOR®

There are many myths about the home buying process. In this short article I will share with you what I feel are the top five.

Myth 1: An appraiser is always hired by the home buyer.
It may seem obvious that since the home buyer pays for the home appraisal that they also get to choose who appraises the home. Truth be told, the buyer will submit payment to the lender to have the appraisal ordered. Once the payment is received the lender then orders the appraisal and the appraiser is chosen out of a group to ensure that the appraisal is not biased.

Myth 2: The more money a home owner/seller puts into a home the more it will appraise. 
Putting more money into a home will not guarantee the value will go up. Many times people over upgrade their home only to find out that the market will not support the higher price. It is key to making sure the right upgrades are performed can help you get the right money back on your investment. Side note: Sometimes the market is in disarray and causes a home owner to lose money if they have to sell at that time. 

Myth 3: An appraiser sets the value of the home.
Appraisers do not set the value of the home. They merely provide an opinion of what they feel the home is worth. if you had three appraisers out in the same day, all three numbers would more than likely be different.

Myth 4: Appraisers and home inspectors do the same thing.
The main focus of a home inspector is to look at current and potential problems of a home. They provide the buyer with a report card of the home. Typically a home inspection is optional. A home appraiser merely provides an opinion of what the home is worth. In some cases such as FHA/VA purchases, the certified appraiser will make sure that the home is viable for those types of loans. 

Myth 5: The most important factor of a home appraisal is the square footage. 
While square footage does play a big a part in a homes appraisal, it is not the most important. Appraisers look at what other homes sold for in the area, upgrades and other details. 

About Jason Gelios REALTOR®/Author
​Jason Gelios is an award winning top producing REALTOR®/Author with Community Choice Realty in South East Michigan. Author of the real estate book ‘Think Like a REALTOR®: A little book about buying and selling residential real estate through the eyes of a REALTOR®. (Click here to buy)
 
Creator of The AskJasonGelios Real Estate Show, Jason educates aspiring home buyers, sellers and existing home owners tips and real world knowledge to help achieve their real estate goals.  Jason is also a local speaker educating home buyers on the process of purchasing a home.
 
He is known for his transparent and honest way of representing buyers and sellers to help them achieve their real estate goals.