When buying or selling your home you hear the word “appraisal” a lot and may find yourself asking “Why do I need an appraisal?” So let’s take a look and see what an Appraiser does!
What happens when I get an Appraisal?
The appraiser will come to your home and list the number and size of the rooms and any extras, such as a fireplace, porch, pool, or garage. The appraiser will compare your home and property to other homes that have sold recently with similar features. The appraiser then estimates that your home might sell for approximately the same amount of money as similar homes. In other words, an appraisal is the estimated amount of money your home may sell for.
An appraiser is an impartial, independent third party who provides an objective report on the estimate of value of real estate. The appraisal is supposed by the collection and analysis of data.
A real estate appraiser values real property such as land, houses, and buildings, not personal property like cars, jewelry, furniture.
Does an appraiser need to be licensed?
Yes, an appraiser meets nationally established standards for education and experience, and successfully passes a comprehensive examination. A state licensed appraiser conforms to national ethical and professional standards, which establish the standards for ethics, competency and confidentiality governing professional appraisal practices.
When do I need an Appraiser?
You will likely need the services of a real estate appraiser whenever an estimate of the value of your real estate is required. Most commonly, this occurs when you apply for a real estate loan, either to purchase or refinance your home. You may also need a real estate appraiser to assist in the appeal of your property tax assessment, for insurance purposes, for probate and estate settlements or other reasons.
When will I know what my house is worth?
It is common to ask the appraiser this question as soon as the appraiser has inspected the property. The truth is at that time the appraiser doesn’t know yet. The inspection is the first step of many that must be completed before a value is determined.
How long will the appraisal take?
A physical inspection of a typical property usually takes about twenty to forty-five minutes. Sometimes an inspection can take longer if the house is difficult to measure or has some unique features that require additional investigation by the appraiser.
After the initial inspection of the property the appraiser spends time examining or analyzing the neighborhood or area. The purpose of this is to search for other properties that are similar to the property being appraised that have sold recently and examine neighborhood influences. When the fieldwork is finished, the appraiser completes the report at his office, and will send if to you and your bank.
Will I need to tell them anything?
Yes, you can provide helpful information. Please tell the appraiser of any previous sale on the property within the last 12 months. Indicate if there is a pending contract to purchase on the property. Does the property have any right of way or other easements? Is there structural damage or water leakage in the house? Basically, inform them about any hidden features or detriments to the property.
So, if you find yourself asking “Why do I need an appraisal?” turn to your Real Estate Agent for guidance. As agents we try and make the buying and selling process as easy as possible!