Property Photo by Tierra Mallorca on Unsplash
Property Photo by Tierra Mallorca on Unsplash
Property Photo by Tierra Mallorca on Unsplash

A real estate agent in the Baton Rouge, Louisiana, area, Donald Auzine has helped many people achieve their dreams of home ownership. As part of the home buying process, Donald Auzine walks his clients through the frequently complicated process of buying a home — from securing lending to the closing. A big part of the lending process includes the appraisal.

A home’s appraisal value is affected by several factors, including the home’s location and age. Structural improvements, as well as the types of amenities and number of bathrooms and other rooms, also affect a home’s price, as do unusual features. Similarly, properties and other buildings in the area affect the price of a home. Schools or shopping centers, for example, can impact the value of a property.

If borrowing money to purchase a home, the lender needs to know how much the property is worth. This is so that it does not agree to a loan amount that exceeds the property’s value. Ultimately, the lender is in the business of protecting its asset, the home, and if the home is not worth the loan amount, the lender loses out if the borrower defaults. Perhaps more importantly, the lender might have problems selling the property if it is worth less than the loan amount.

While technically the appraisal protects the lender, homeowners are prevented from purchasing a home whose price is seriously inflated.

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Donald Auzine assists homebuyers and sellers throughout the greater Baton Rouge area as a Realtor with Burns & Company.

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