Home Appraisal
Home Appraisal
Home Appraisal
A home appraisal is an estimate of the fair market value of what a home is worth. This is a necessary step in getting your financing secured and your lender will want the appraised value to meet the value of the loan. The question that many homeowners ask me is how does the appraiser determine the value of my home? The appraiser will be looking at a number of different things to get an accurate real estate appraisal. The appraisal will include recent sales information for similar properties, the current condition of the property, and the location of the property. The way most residential property is evaluated is by following what is known as the comparable sales price approach. The appraiser will use market data of most similar homes that have sold within a certain distance of the sellers home over the last six months. They’re not evaluating the decor or furniture or anything that’s not affixed to the property what’s most important are your home’s physical characteristics age, square footage, the number of bedrooms and baths, lot size, location, view as well as their observable condition of your home’s exterior, landscape, condition of the interior, home improvements, extras and additions.
Conventional:
In a typical real estate transaction, where a conventional (non-government-insured) home loan is being used, the appraiser is mostly concerned with the current market value of the property in question. That is his primary objective when visiting the house. He is only concerned with the condition of the property as it relates to the value.
FHA: When an FHA loan is being used, the appraiser has two objectives. The Department of Housing and Urban Development (HUD) requires him to determine the current market value, as with any appraisal. But they also require a property inspection to make sure the home meets HUD's minimum standards for health and safety. It's what makes the FHA appraisal process unique. More info check out the fha website: www.fhahandbook.com/appraisal-guidelines.php
Tip for sellers:
Before you list your home get an appraisal done and use that appraisal to set a realistic listing price for your home. Search for a qualified appraiser on google.
Tip for buyers:
When writing your offer, it is highly recommended that you make the home purchase contingent on the home inspection and appraisal.
DID YOU KNOW?
Did you know the interest rate for a 30-year fixed mortgage hit a record high of 18.63% in 1981?
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