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Whether you’re buying or selling a home, an appraisal is an essential part of the real estate process. It determines the value of a property within the current market to ensure the asking price is fair. Below are a few of the most common questions about real estate appraisals to help you better understand the importance of these reports.

4 FAQ About Real Estate Appraisals

What is an appraisal?

A real estate appraisal is a professional estimate of the market value of a property based on a variety of factors. These include the condition of the property, unique features such as an in-ground pool or finished basement, and location. The state of the real estate market is also taken into consideration. 

What is market value?

Market value refers to the estimate of how much a property would sell for given the conditions of the current real estate market. For instance, in a seller’s market when supply is low and demand is high, a home would be appraised at a higher value. Meanwhile, it would be appraised at a lower value in a buyer’s market where supply is high and demand is low. 

Why would you need an appraisal?

real estate appraisalMortgage lenders often require the buyer to schedule a home appraisal to ensure the property will sell for the amount they are lending out. Homeowners may also request a home appraisal to help them price their home. Other situations that call for home appraisals include mortgage refinancing and applying for other loans where you are using your property as collateral.

What’s the difference between an appraisal & an inspection?

Real estate appraisals are only designed to provide a professional estimate of the value of a home. Inspections provide the homeowner or buyer with a detailed assessment of the condition of the home as well as any components that require repair or replacement. For a smooth real estate experience, you need both. 

 

If you need to schedule a real estate appraisal for a home you’re planning to purchase, turn to the team at Brooks Valuation. Based in Superior, CO, these premier appraisers offer in-depth assessments for both residential and commercial properties. Whether you need an appraisal for mortgage refinancing, real estate investment, or divorce settlements, you can count on their team for comprehensive results. Call (303) 456-8922 today to schedule an appointment with a representative or visit their website for more information about their services. 

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