| It seems like everyone is talking about appraisals today and a lot of people have questions about the whole process. So what's an appraisal anyway? An appraisal is what determines the fair market value of your property. The appraisal is performed by a licensed appraiser who provides a professional opinion of the value of your property based on a variety of factors. Its an important part of the mortgage process that needs to happen before the transaction can be finalized. It's easier to understand the whole appraisal process by breaking it down into three main parts. There's the Real Estate Inspection. The Comparables. And The Final Report of Value. The real estate inspection will take anywhere from 10 to 30 minutes based on the size of your home. The appraiser will record things like square footage, the dimensions of your property and the number of rooms in your home. He'll verify his findings with information provided by third parties such as the real estate multiple listing service and county records. The next step is for the appraiser to evaluate Comparables. Comparables are recent home sales in and around your neighborhood. Analyzing these recent past sales helps an appraiser determine the current market value of your home. And when I say recent, I'm talking 3 to 6 months. This is important because comparable sales from many years back may not reflect true home values today. When selecting comparable properties, the appraiser is looking for some very specific things ... |
