The Value Of Home Appraisals (Besides Being Mandatory Most Times).
A home appraisal determines the value of the home or property you are purchasing. An appraiser estimates the market price and compares it to the selling price. If there is a difference between what someone is asking for their premises (the seller) and what another person would pay, then an appraiser works to find out what the market price of that property or home is.
The primary function of an appraiser is to assist in any type of real estate transaction where there are large sums of money involved, such as when you buy a new home or refinance your existing home loan. An appraiser will come out and look at your house and determine if the home you want to buy is worth the price being asked for it.
The seller may hire an appraiser to help determine what they should ask for their property, or a bank will require an appraisal as part of its approval process for a mortgage application.
Appraisers are trained in evaluating real estate, estimating market values, and interpreting data to create a detailed report of value.
Appraisers generally will charge per hour or per square foot, depending on the scope and complexity of work involved. The fees should be reasonable for the area you live in. Fees may vary based on whether an appraiser is conveying market value information to a public agency such as a government body that subsidizes housing, or to a third party such as a lender or real estate broker.
The appraisal is valid when it meets all the following criteria:
- The appraiser must have no direct or indirect interest in the property, which includes being an owner of a real estate agency involved in selling properties.
Appraisers are usually contracted by lenders or title companies, not by sellers. So it is against the law for a seller to hire their own appraiser and ask the buyer to pay for it. If you are selling your home, keep in mind that you do not get to choose who appraises your property. In most cases, the lender or title company will use a list of approved appraisers they have on file.
Appraisers will typically come out to your home within one to two weeks from when the request is made. An appraiser will go out and examine the property, take pictures, make notes about any notable features, and then they will use that information to estimate the market value of the home based on comparable sales in the area. They will typically be able to provide you with a report of their findings between two days and four weeks.
Appraisers will be able to estimate market value based on comparable sales in your area, the condition of the home, any improvements made, as well as updates or remodeling done. They can also look at factors such as the neighbourhood where you live - is it a great location with good schools? If the property is unique in some way, that could also add to its market value. Appraisers can make adjustments for unusual circumstances such as a home being sold by someone who recently died and was not actively using it during their lifetime.
Appraisers look at similar properties in your area, examine why they sell for what they did, and will use this information to estimate the value of your home as well. For instance, if a home recently sold in your area for $967,000 and it only has two bathrooms and 1,800 square feet of space, then an appraiser will not likely assign a value of more than $1 million to another property because that's where the market is at for that particular size home.
Appraisers also examine a property's condition and how recently it has been updated, as well as whether any improvements were made to the property that would enhance its value. For example, if you just finished a $20,000 kitchen remodel with granite countertops and porcelain tile floors in your home, then your appraiser will likely assess that the value of your home has increased $20,000 and therefore is worth more now than it was before you did the remodel.
Your appraiser may also want to know if you are planning on selling any time in the next 12 months so they can try to estimate how well your property will hold its value over the next year.
In summary, home appraisals are a way to get an accurate picture of what your real estate is worth and whether or not you are getting a good deal on the property you are purchasing. In most cases, it's in your best interest to hire an appraiser because it will prevent any potential problems in the future under certain conditions, such as a lender foreclosing on your property because you defaulted on your payments. So it's always best to be safe and hire an appraiser when purchasing real estate, especially if you are paying all cash, refinancing, or getting lots of equity out of a home.
Appraisals are typically paid for by the person who hires one.
If you are buying a home that requires a mortgage, then some lenders and mortgage brokers will pay the appraiser fee but you still have to pay your closing costs. It is best to ask your lender or real estate agent in advance how appraisal costs will be handled so you know ahead of time.
The primary function of an appraiser is to assist in any type of real estate transaction where there are large sums of money involved, such as when you buy a new home or refinance your existing home loan. An appraiser will come out and look at your house and determine if the home you want to buy is worth the price being asked for it.
The seller may hire an appraiser to help determine what they should ask for their property, or a bank will require an appraisal as part of its approval process for a mortgage application.
Appraisers are trained in evaluating real estate, estimating market values, and interpreting data to create a detailed report of value.
Appraisers generally will charge per hour or per square foot, depending on the scope and complexity of work involved. The fees should be reasonable for the area you live in. Fees may vary based on whether an appraiser is conveying market value information to a public agency such as a government body that subsidizes housing, or to a third party such as a lender or real estate broker.
The appraisal is valid when it meets all the following criteria:
- The appraiser must have no direct or indirect interest in the property, which includes being an owner of a real estate agency involved in selling properties.
- Appraisal must be made at the time of purchase / sale, or within 90 days for a refinance application (provided that no substantial changes have occurred to the value).
- The appraiser must not provide his services at a discounted rate for his own properties in order to inflate the price of such property.
- Appraiser must be competent and have adequate experience, as well as thorough knowledge of real estate values in your area.
Appraisers are usually contracted by lenders or title companies, not by sellers. So it is against the law for a seller to hire their own appraiser and ask the buyer to pay for it. If you are selling your home, keep in mind that you do not get to choose who appraises your property. In most cases, the lender or title company will use a list of approved appraisers they have on file.
Appraisers will typically come out to your home within one to two weeks from when the request is made. An appraiser will go out and examine the property, take pictures, make notes about any notable features, and then they will use that information to estimate the market value of the home based on comparable sales in the area. They will typically be able to provide you with a report of their findings between two days and four weeks.
Appraisers will be able to estimate market value based on comparable sales in your area, the condition of the home, any improvements made, as well as updates or remodeling done. They can also look at factors such as the neighbourhood where you live - is it a great location with good schools? If the property is unique in some way, that could also add to its market value. Appraisers can make adjustments for unusual circumstances such as a home being sold by someone who recently died and was not actively using it during their lifetime.
Appraisers look at similar properties in your area, examine why they sell for what they did, and will use this information to estimate the value of your home as well. For instance, if a home recently sold in your area for $967,000 and it only has two bathrooms and 1,800 square feet of space, then an appraiser will not likely assign a value of more than $1 million to another property because that's where the market is at for that particular size home.
Appraisers also examine a property's condition and how recently it has been updated, as well as whether any improvements were made to the property that would enhance its value. For example, if you just finished a $20,000 kitchen remodel with granite countertops and porcelain tile floors in your home, then your appraiser will likely assess that the value of your home has increased $20,000 and therefore is worth more now than it was before you did the remodel.
Your appraiser may also want to know if you are planning on selling any time in the next 12 months so they can try to estimate how well your property will hold its value over the next year.
In summary, home appraisals are a way to get an accurate picture of what your real estate is worth and whether or not you are getting a good deal on the property you are purchasing. In most cases, it's in your best interest to hire an appraiser because it will prevent any potential problems in the future under certain conditions, such as a lender foreclosing on your property because you defaulted on your payments. So it's always best to be safe and hire an appraiser when purchasing real estate, especially if you are paying all cash, refinancing, or getting lots of equity out of a home.
Appraisals are typically paid for by the person who hires one.
If you are buying a home that requires a mortgage, then some lenders and mortgage brokers will pay the appraiser fee but you still have to pay your closing costs. It is best to ask your lender or real estate agent in advance how appraisal costs will be handled so you know ahead of time.
