What is a Home Appraisal?
A home appraisal is a process that starts with the fair market value that is 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.
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 by law The 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.