As a Home Buyer, you may be wondering what a home appraisal is and why it is necessary in order to purchase a home. As a Home Seller, I am sure you are aware that this will be done as part of your home selling process.
With this post I hope to answer 5 Common Questions on the topic of “Home Appraisal”.
- What is a Home Appraisal?
A home appraisal is an unbiased professional estimate of the market value of a specific property. Home Appraisals are done by licensed Appraisers.
- Who is a Home Appraiser?
A home appraiser is a licensed professional who is an expert in residential valuations. Their job is to interpret the market value of residential properties.
- How is Market Value determined?
A property’s Market Value is determined using various different factors. Some of these factors include property location, supply and demand, property views, amenities, structural conditions and comparisons to recently sold properties in similar conditions.
- Why is an Appraisal needed?
An appraisal is needed and highly recommended anytime a home is being purchased. When a home is being purchased with financing, a home appraisal is required by the financial institution or lender.
Since an appraisal establishes a property’s market value, it is used to protect both the lender and the buyer; ensuring that over-payment is not made on a home.
- Who pays for Home Appraisals?
Home appraisals are usually paid for by the home buyer. They are usually a couple hundred dollars, depending on the type of appraisal ordered.
As a home seller, you may also order a home appraisal of your property to help you and your Real Estate Professional determine your home’s market value. This appraisal is also a couple hundred dollars.
I hope you found this post helpful in answering common Home Appraisal questions.
Do you have questions or comments? Please let me know!