Things To Know About Home Appraisal

The home appraisal process is one of the most critical stages in home buying

. The Appraisal Foundation "" USPAP (Uniform Standards of Professional Appraisal Practice) defined it as the process of making an opinion of value. The valuation is the one that tells the price of the house or real estate property, the value that is most likely sell for in a market of real estate. If you are a first time home buyer or investor and you are planning to get, let us say, a Livonia Real estate property, it will be helpful for you if you fully understand the process of home appraisal. While you are in the stage of viewing Livonia Homes for Sale or Livonia MLS, try to also learn more about home appraisal so when the lender give you the go signal to get your house appraised, you are already familiar and acquainted with the process. How does home appraisal help in the home buying process? How is it different from home inspection? There are just two of the questions that you need to answer.

Home appraisal

This procedure is just a survey of a house or a real estate property and it done by a professional appraiser to be able to estimate the value of the property in the current market. This is usually done after the lender or the bank has approved the property for a loan of a potential home buyer. It involves a report containing the evaluation of the present condition and status of the house, the neighborhood and other similar properties in the area. The appraisal can be a sales comparison of properties and homes that are relatively the same with the property being sold in the market. it can also be a valuation of cost or replacement value of the property. In a sales comparison, the house is priced and evaluated depending on the other properties in the area while cost or replacement valuation is only done to newly built homes. It is also important to point out that home appraisal is very much different from the process of inspecting the house. Appraisals only look at the important concerns of the property and they do not have to intensively look into the status of the house.

Appraiser

Having a professional license is a must for home appraisers. They also need to strictly follow ethical standards and rules regarding appraisals of house and real estate properties. They are a third party in a home buying process and their primary function is to give smart opinion and estimate of the property"s current market value. The appraisers should not be in any way connected to the seller or the buyer to ensure an unbiased and objective estimated value of the house.

Who is responsible for picking the appraiser? It is actually the lender who chooses the appraiser for the property. They can either have their own appraisers or they may have a contract with an independent appraisal company. Some banks allow the seller to choose the appraiser for the house, but it will only be approved if the company"s reputation is already tested. Sellers can also decide to get their house appraised before putting the property in the market, just to make sure of the real value of the house beforehand. Home appraisals can cost 300-500 USD.

by: Alexander Mathias

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