An appraisal estimates and assesses the value of your home. This allows you to make sure that when your home is placed on the real estate market it is priced in the correct price range. Knowing the value of your home will make the transition into the real estate market a little easier if you start out at the right price instead of starting too high or offering it too low.
Lenders often require an appraisal of a home in order to finance a home loan for a potential buyer. The appraisal should be done by a professional for the lenders to consider it a legitimate assessment. A buyer will usually request one to ensure that they are not spending too much for a house they might have put an offer on. Sometimes a homeowner will request an appraisal if they are unsure of the value of their home before they place it on the market.
How to get the value of your home
The process of which an appraisal company looks at a home has many factors in deciding the value of your home or property. The lot size, where the property is situated in the area, the real estate taxes are some factors in the evaluation. They will also look at sales in the past year of comparable homes. This means homes of about the same size, same number of bedrooms and bathrooms, or any improvements that have been made. The location of your home is very important in the appraisal because if you set in a flood zone your home may not be valued like a home that is in a prominent neighborhood.
A visual inspection along with the age, upgrades, and condition of the home are all taken into account for the appraisal. Appraisers estimate how much it would cost to build a home similar in size. They also compare homes in the area that were recently sold to estimate the value of your home. The appraisers will do some inspecting of your home but this is different than a home inspection where they are more concerned about the condition of the structure.
Reporting the Value
The appraisal company will take all the information taken from your home to create what is called an appraisal report. This report contains information that pertains to the description of the property, the home address and where the neighborhood stands in the market for property values. The report also contains a list of the features of your home such as attic, garage, and foundation type, what is the exterior, how many rooms and bathrooms are in your home.
The report also contains the properties that were used in the comparisons to get the value of your home. The homes should be close in size and style, and they should also be close to your neighborhood. The way the appraiser came to the estimated value of the home should be detailed in the report.
No Comments yet
Sorry, the comment form is closed at this time.