Any real estate transaction involving a mortgage will likely include a home appraisal, which ensures that the property is actually worth the selling price. While your real estate agent might make determining a property’s value seem fairly straightforward, an accurate appraisal actually involves a great deal of research and a comprehensive understanding of the local market. Below is an overview of how appraisers determine the value of a home and what to expect during the process.
What to Expect During a Home Appraisal
Before the appraiser shows up at your home, they’ll already have conducted research on the property and may have a preliminary report. Most begin by searching public records and the sales history of the property, then looking for recent sales of comparable properties in the area. Research on local demographic and real estate market trends provide further critical information appraisers need to set an accurate price.
The Appraisal Inspection
Unlike the property inspection, home appraisals focus on essential information about the house. The appraiser will count bedrooms, check bathrooms and other amenities, and take measurements to calculate the square footage of the property. While they won’t examine the foundation or check the HVAC system for potential problems, they will note any obvious deficiencies that may affect the value of the home.
Preparing the Report
After the inspection, the appraiser may decide to check up on permits for any improvements, verify information, or check into more comparable properties. In about 10 days, they’ll send a comprehensive home appraisal to the lender, who will then decide whether or not to issue the loan.
With over 18 years of experience and award-winning customer service, The Justice Group is Oak Ridge, NC’s premier real estate agency. Their multifaceted team has the expertise to guide you through every step of the real estate transaction, from finding a property to making an offer and handling the home appraisal. Visit their website or call (336) 324-5716 to learn more about their services.