What is an appraisal?
An appraisal is a written analysis of the estimated value of your property. A qualified appraiser who has knowledge, experience and insight to the marketplace prepares the document. This ensures that you’re paying fair market value for your home. An appraisal is required in order to close on your new home or property.
To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser’s qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states. Usually the appraiser will inspect both the interior and exterior of the home. However, in some cases, only an exterior inspection will be necessary based on your financial strength and the location of the home. Exterior-only inspections usually save time and money, but if you’re purchasing a new home, your Loan Officer will contact you to determine if you’d be more comfortable with a full inspection. After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighbo
A – An real estate appraisal is an objective opinion of the value of a particular parcel of real estate given by a professional appraiser. But the process is much more detailed and involved than that one sentence definition. The appraiser must thoroughly inspect and gather information about the subject property and the surrounding area. The appraiser will consider all the relevant factors about the property and the neighborhood, both negative and positive. A search for similar properties that have sold will be made and the most relevant of these will be inspected by the appraiser and photographed. If it is an income producing property that is being appraised then the amount of income that the property produces will be taken into consideration. After the appraiser has gathered as much information that is needed relevant to the property being appraised, the appraiser follows a process that leads them to a logical conclusion as to value of the property. Depending on the type of property i
