Home Appraisal – Why Do You Want One?
A home appraisal process starts with the fair market value that is applied to your home that you are purchasing or refinancing completed by a State certified professional appraiser on behalf of the lender who inspects the size, condition, functionality and quality of the home. These are the stages in the process:
- A licensed appraiser will schedule a time to visit the property and inspects the home.
- The appraiser will research and review similar homes in your area and compare recent sales to determine a market value.
- The appraiser will then give a final appraisal report with all data and research to issue a final opinion of value. This information will go to the lender for final approval.
How does an appraisal work?
Essentially, There are three stages to expect from a 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.
Why do I need a home appraisal?
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.
How is the appraiser chosen?
Since by law Moreira Team cannot do appraisals themselves, a licensed independent professional appraiser is selected by the Appraisal Management Company (AMC) which 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.