What is an appraisal?
An appraisal is a step-by-step analysis undertaken by a professional appraiser for the purpose of accurately estimating an opinion of value. When a mortgage loan is made, the loan is secured by the real estate. Lenders want to be reasonably sure the amount of the loan does not exceed the value of the real estate. So the lender normally requires a professional appraiser to estimate the value of the property for the purpose of estimating market value. Buyer Asks: Will I Need Homeowners Insurance! Prior to closing, you will need to find an insurance company to provide homeowners insurance. A lender will require it but even if you are purchasing with cash, you should make sure that you have insurance to protect your investment. If you are purchasing a condo or townhouse, the Homeowners Association fee will cover hazard insurance but you should still check with your insurance company to determine the coverage you need for your contents and property inside the exterior walls To get the best
Because much private, corporate, and public wealth lies in real estate, the determination of its value is essential to the economic well-being of society. It is the job of the professional appraiser to determine these values by gathering, analyzing, and applying information pertinent to a property. Unquestionably, the professional opinion of the appraiser, backed by extensive training and knowledge, influences the decisions of people who own, manage, sell, purchase, invest in, and lend money on the security of real estate. And because the appraiser is trained to be an impartial third party in the lending process, this professional serves as a vital “check in the system,” protecting real estate buyers from overpaying for property as well as lenders from over lending to buyers.
An appraisal is an unbiased opinion of the nature, quality, value, or utility of an interest in or aspect of, identified real estate and related real property. The professional real estate appraiser performs a variety of functions and services; that provide different types of value and consults with decisions about real estate.
