What is an Appraisal and Why do I need one?
Before the lender will make a loan on a property, an estimate of value is required. It is common for lenders to require that appraisals conform to the Uniform Standards of Professional Appraisal Practice. This is done so that consistent, detailed information is provided on all appraisals providing for protection for both the bank’s and the buyer’s investments. The Appraisal provides an estimate of the value of the property. The information in the appraisal is necessary to evaluate whether or not the property is adequate security for the loan. An appraisal is a report made by a qualified person setting forth an opinion or estimate of value. An independent appraiser inspects the property, neighborhood and at least three other properties of comparable size and style.
