Do You Need a Home Appraisal?

What is a Home Appraisal?

A home appraisal is a process in which a fair market value is assessed and applied to a home that you are purchasing or refinancing. This process is completed by a state certified professional appraiser on behalf of the lender. The appraiser inspects the size, condition, functionality and quality of the home before assigning a value.

An appraisal protects the client and lender so that they do not overpay for the home. A home appraisal helps to establish a property’s value – this means the sales price it would be offered in an open and competitive real estate market.

See How Easy it is to Get Your Custom Rate!
Watch Now

How Does a Home Appraisal Work?

Essentially, you can expect three stages of a normal home appraisal:

  • The Inspection Stage – a licensed appraiser will come to the property and will inspect it to determine fair market value.
  • Market Comparison – the appraiser researches similar homes in your area and compares most recent sales to appraise market value.
  • Final Appraisal Report – using the data gathered from the inspection and comparison research, your appraiser issues a final appraisal report.

How is the Appraiser Chosen?

Since a mortgage company cannot do appraisals themselves, a licensed independent professional appraiser is selected and conducts the appraisal on the lender’s behalf. By law, the appraisal must be done by a third party who has no interest in the outcome of the appraisal.

See How Easy it is to Get Your Custom Rate!
Watch Now