What is a home appraisal and why is it important?
A home appraisal is an unbiased opinion on the fair market value of a parcel of real estate, performed by a trained and licensed individual. A home appraisal may be required for various real estate transactions when the value of the home is in question. Having a trusted and unbiased opinion of value provided to you by a licensed appraiser is the best resource when it comes to the value of your home. A home appraisal is an estimate by a professional of the market value of a property. It is an important step in the mortgage process, as it determines how much money the lender will be willing to loan against the property. The appraiser will look at many factors to come up with a valuation, including recent sales of similar properties in the area, the size and condition of the property, and any zoning or other restrictions that may apply. The appraised value is used to set both the purchase price and interest rate for a mortgage
Step by Step workflow of a proper and accurate real estate appraisal include:
- Identification of the Problem
- Scope of Work Determination
- Data Collection and Property Description
- Data Analysis
- Site Value Opinion
- Application of the Approaches to Value (Cost, Income, and Sales Comparison)
- Reconciliation of Value Indications and Final Opinion of Value
- Report of Defined Value
Who orders a home appraisal and when?
There are a few instances when it might be a good idea to order a home appraisal. For example, if you're thinking about selling your home, it's usually a good idea to get an appraisal first so you have an accurate estimate of your home's worth. An appraisal can also help you determine whether you need to make any repairs or updates before putting your home on the market.
If you're considering refinancing your mortgage, you may also want to get an appraisal to ensure that the new loan amount is not more than what your home is worth. And finally, if you're buying a new home and need to get a mortgage, the lender may require an appraisal as part of the loan approval process
WWhat does a home appraiser look for when appraising a property?
The job of a home appraiser is to estimate the market value of a property. In order to do this, they typically look at similar homes that have recently been sold in the area, as well as homes that are currently on the market. They'll also consider things like square footage, number of bedrooms and bathrooms, age of the property, and condition.
One of the most important things that an appraiser looks for is comparable - properties that are like the one being appraised in terms of size, age, and condition. They'll also look at recent sales data to get an idea of what comparable properties have sold for to produce an estimate for the current property
How is the value of a home determined?
The value of a home is determined by several factors, including its location, size, and condition. The most important factor, however, is the demand for homes in that area. If there are more people who want to buy homes than there are homes available for sale, the prices will go up. Conversely, if there are more homes available for sale than people who want to buy them, the prices will go down
How can you be sure that the value of your home is accurate?
There are a few things you can do to get an accurate estimate of your home's value. One is to research recent sales of similar homes in your area. You can also get an appraisal from a professional real estate appraiser. Finally, you can use online tools like Zillow or Trulia to get a ROUGH estimate. Keep in mind that these estimates are not 100% accurate. And for that very reason, Ask Local has instituted our very own Appraisal Resource Center. Get your questions answered in real time and even order a short form appraisal, from a local appraiser, at a discounted price. Knowledge is power and accuracy in appraisals in crucial!! Don’t be fooled by the quick estimates. It’s a recipe for disappointment and getting less than expected