What do I Need to Know About Home Appraisals?
If you have experienced the home buying process, you have likely heard of a home appraisal. Home appraisals allow the buyer, seller and lender to determine the fairest sales price possible for the home based on a variety of factors. Here are some basics about appraisals:
What is a home appraisal?
A home appraisal is a determination of a home’s true value. To ensure that this value is unbiased, a professional home appraiser conducts the appraisal.
Who requests the home appraisal?
A home appraisal is requested by the lender to verify that the money asked for by the borrower is an appropriate amount. The lender cannot request a specific home appraiser, so one is assigned from a pool of appraisers.
How does the appraiser determine the value of the home?
Many factors are considered when determining the home’s appraised value. Through many processes such as home walk-throughs, property walks, and additional reviews, the home appraiser will assess the property size, condition of the exterior and interior of the home, as well as improvements and upgrades that have been made to the original structure.
How can the homeowner increase the appraised value?
Simply by making sure that the home is clean and free of needed repairs, the homeowner can increase the appraised values. Some common repairs that should be addressed include cracks, stained walls or carpets, damaged flooring, leaky faucets, and broken or damaged windows. It is also important for homeowners to assess the exterior of the home. Repainting trim, cleaning garage doors and siding, and touching up landscaping can all add to the appraised home value.
As a homebuyer, it is in your best interest to know the house’s value compared with similar homes in the market, and it is required to receive your home loan approval.