Home Appraisal

Home Appraisals

What are home appraisals?

A home appraisals is an inspection of your home that is generally required by the lender to establish the value of the home and ensure that it will be sufficient collateral for the amount of the loan provided. Home appraisals are done by a private appraiser who will visit your homehome appraisal and inspect both the interior and exterior. It is important to keep in mind that an appraisal is different from a home inspections. An appraiser will take into consideration many other factors such as location, comparable values, and historic sales, to determine a fair market value.

It is important for home buyers to monitor the appraisals for fair treatment in relation to similar houses in the surrounding area, and in view of the standards set for appraisers by states licensing boards. Market values can fluctuate over time and also vary from neighborhood to neighborhood causing appraisals to become outdated. The buyer should be comfortable with the appraisal before committing to a firm offer and before a loan closes.

The appraisals can benefit the buyer and homeowner in many ways including….

  • providing assurances that the home is not over-valued
  • justifying the amount of the loan
  • qualifying you for certain terms
  • evaluating equity to remove Private Mortgage Insurance (PMI)
  • protecting against negative home equity
  • aiding tax and estate planning
  • helping determine insurance valuations
  • Determining the feasibility of home improvements, refinancing or additional financing