Home Appraisal

Typically required by the lender, a home appraisal establishes that the value of the home is enough collateral for the loan amount. The appraisal fee is usually paid by the buyer. A home appraisal is NOT the same thing as a home inspection.

A home appraisal is done by an independent appraiser, and must be assigned to an appraisal management company by the lender. They will generally visit the property and inspect the interior and exterior, but there are multiple factors that go into their decision beyond the physical appearance of the home.

Appraisals become quickly outdated because of constantly changing market values. So, if you’re considering a refinance, you will likely need a new appraisal. Appraisal value won’t change the assessment set for property taxes. 

It is important for the buyer to monitor appraisals in comparison to similar homes in the area of the same value. A buyer should be comfortable with the appraisal before committing to a firm offer and before the loan closes. Any concerns or complaints should be brought to the attention of the lender or the state regulatory board. 

An appraisal protects the lender, but there are also many benefits to the buyer. An appraisal justifies the amount of the loan, qualifies a buyer for certain terms, protects against negative home equity, can aid in tax and estate planning, can help determine insurance values, and more!