At The Mike Love Team, we understand that the real estate journey can be both thrilling and complex. That's why we're committed to providing you with insights that can make your experience as seamless as possible. In our latest video, we sit down with Mike Stoerkel from Hamilton Appraisal Services to unravel the mysteries behind property appraisals. Specifically, we delve into the differences between VA and conventional appraisals, shedding light on a topic that can greatly impact your real estate transactions.

Why Do Appraisals Matter?

Before we dive into the distinctions between VA and conventional appraisals, it's essential to understand why appraisals are a crucial part of the real estate process. Essentially, an appraisal is an independent assessment of a property's value. It's conducted by a certified appraiser and serves as a valuable tool for both buyers and sellers.

Appraisals are vital because they:

Guide Pricing: For sellers, an appraisal helps set an appropriate asking price. For buyers, it ensures they're not overpaying.

Secure Financing: Lenders use appraisals to determine how much they're willing to loan to a buyer.

Negotiation Tool: Appraisals can be a valuable negotiation point if the assessed value differs from the agreed-upon price.

VA vs. Conventional Appraisals: The Key Differences

Now, let's explore the core differences between VA and conventional appraisals:

1. Purpose:

VA Appraisal: These are specifically for properties being purchased with a VA loan. The focus is on ensuring the property meets VA's minimum property requirements.

Conventional Appraisal: These appraisals serve various loan types, such as FHA or conventional loans. They aim to determine the fair market value of the property.

2. Inspection Requirements:

VA Appraisal: VA appraisers conduct a thorough inspection to ensure the property meets health and safety standards.

Conventional Appraisal: Conventional appraisals may not require such a comprehensive inspection.

3. Property Condition:

VA Appraisal: VA appraisers are stringent about property condition, focusing on any issues that could affect the buyer's health or safety.

Conventional Appraisal: While property condition is assessed, it may not be as strict as VA appraisals.

4. Comparable Sales:

VA Appraisal: VA appraisals prioritize the use of recent and relevant sales data, which can differ from conventional appraisals.

Conventional Appraisal: Conventional appraisals generally rely on comparable sales data but may have more flexibility.

5. Funding Fee:

VA Appraisal: VA loans typically include a funding fee, which helps cover the cost of VA appraisals.

Conventional Appraisal: Conventional loans may have different fee structures.

6. Turnaround Time:

VA Appraisal: VA appraisals may have longer turnaround times due to their thorough nature.

Conventional Appraisal: Conventional appraisals might have quicker turnaround times.

Making Informed Real Estate Decisions

Understanding the nuances between VA and conventional appraisals can empower you in your real estate endeavors. Whether you're a buyer, seller, or real estate enthusiast, these insights can help you navigate the appraisal process more effectively.

For personalized guidance on real estate matters, contact The Mike Love Team at Great Move Realty. We're here to provide you with the expertise and support you need on your real estate journey.

🏡 Watch the full video with Mike Stoerkel from Hamilton Appraisal Services.

Remember, at The Mike Love Team, we're not just real estate agents; we're your partners in making informed real estate decisions.