What is a Home Appraisal?
A home appraisal is a survey of a home by a professional for the property market value. In most cases an appraisal is done for a bank when a home is being approved for loan for the home buyer. The home appraisal is a detailed report that looks at such items as the condition of the home, the neighborhood, what similar homes are selling for and how quickly similar homes sell (to name a few). The appraisal may be a sales comparison or a cost/replacement estimate. There is also an income appraisal, but this is done primarily with commercial properties. The sales comparison will look at other properties in your neighborhood, what they are selling for and figure how they compare to your home. With a cost/replacement estimate the appraiser is looking at what it would cost to replace the home if destroyed; this more commonly used for new homes. Important Note: An appraisal is not a home inspection! Appraisers only look for major concerns, they do not examine the home’s full condition (i.e. exa
Home Appraisal includes your whole home estimation. If you are selling your home with or without a real estate agent you should get an appraisal before you decide on the selling price. It included essential step to selling your home, determining your property value, the size of your home and deciding how much you will qualify for that to sell the home. Comparing the value of your home compared to similar properties in your area.
One of the many documents necessary in a real estate transaction is a home appraisal — a written statement of the value of a home. The value is derived by calculating several different factors and analyzing market conditions in the area. While buyers and sellers may undervalue the home appraisal, it remains an important part of any real estate sale. A home appraisal must be performed by a licensed appraiser who is knowledgeable in estimating the current home value. During the process, the appraiser will visit the site and take pictures both inside and outside. Measurements will also be taken. An examination of the property is made in order to identify any defects or upgrades to the property. This is necessary in order to place a fair and justifiable value on a home. Cost approach is one way of placing a value on a home and is usually used for insurance purposes. It involves using the current rate of building the home per square foot in a particular area. The cost of upgrades or repairs
A home appraisal is a survey of a home by a professional for their opinion of the property market value. In most cases an appraisal is done for a bank when a home is being approved for a loan for the home buyer. The home appraisal is a detailed report that looks at such items as the condition of the home, the neighborhood, what similar homes are selling for, and how quickly similar homes sell (to name a few). The appraisal may be a sales comparison or a cost/replacement opinion of value. There is also an income appraisal, but this is done primarily with commercial properties. The sales comparison will look at other properties in your neighborhood and what they are selling for and then figure how they compare to your home. With a cost/replacement opinion of value the appraiser is looking at what it would cost to replace the home if destroyed; this is more commonly used for new homes. Important Note: An appraisal is not a home inspection! Appraisers only look for major concerns, they do
An appraisal is an opinion of market value developed through appropriate research of local market activity and replacement cost analysis. Within the context of a mortgage loan, an appraisal serves to help the lender assess the proposed collateral (subject property). It would be more appropriate to say that an appraisal “influences” rather than “determines” how much a bank will lend…an appraisal is really only part of a bigger picture that is being considered. In many cases, a lender’s policy will be to lend no more than the lesser of the appraised value vs. the purchase price. Things that are checked during an appraisal generally mirror what a typical buyer would look for during a showing. It should not be confused with a home inspection, which does more to examine structural integrity and mechanical soundness. Size, age/conidtion, quality of construction, room count, layout & design are all examples of things that are checked during an appraisal.
