The Truth About Appraisals
In an appraisal, a certified appraiser looks at a number of factors to determine the value of your home. However, many homeowners still have many misconceptions about appraisals. Here are five things you may not know about the appraisal process:
-
An appraiser's primary mission is to protect the lender. While many people believe an appraisal simply assures that the buyer does not pay too much for a home, this is not the case. An appraisal is generally a protection measure for the buyer's lender, not the buyer. This is why the appraisal generally takes place before lender gives final approval of the buyer's loan.
-
Appraisers don't pay too much attention to cleanliness of a home. While it's certainly a good idea to straighten up before the appraiser arrives, appraisers don't pay too much attention to smudged mirrors or dusty furniture. They are generally looking for more serious forms of neglect, such as cracked walls and ceilings, torn carpet, broken windows, busted appliances and damaged floors.
-
Appraisers must be licensed. According to federal law, real estate appraisers must meet certain standards and educational requirements to be licensed.
-
An appraisal is not the same thing as a home inspection. While an appraiser determines how much a home is worth for the lender, an inspector informs the buyer about the overall condition of the home and any potential problems.
- Appraisers consider many factors to determine the value of the home. The appraiser looks at the condition of the property, comparable sales in the area, projections for future value, any extra upgrades or additions the home may offer, the size of the home, the location of the property, the size of the lot and even the home's proximity to desirable schools and other public facilities.
Click here for a complimentary Comparative Market Analysis of your home.