What Happens During a Real Estate Appraisal?
Most homeowners have a general idea of their home's value, based on what they originally paid for it and the changes and upgrades they have made over the years. Without an official appraisal, though, it is impossible to know the exact value of the property, so many realtors and mortgage lenders request appraisals to get an unbiased assessment of how much a property is worth.
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Exterior Inspection
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During a home appraisal, the appraiser walks around the outside of your home, taking note of the location, the view and the condition of the home's exterior. In some cases, he might take measurements of any architectural features, such as decks and patios, and note any features like landscaping and swimming pools. The appraiser will also make a visual inspection of the roof and foundation, noting any damage or areas that might need to be repaired. Most appraisers will take photographs of the outside of your home.
Interior Inspection
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Your home's interior is also inspected during the appraisal. The appraiser will note the number of rooms and their size, paying special attention to features such as walk-in closets, windows and skylights. She might take measurements and photographs of the rooms. The appraiser will also take into account the materials used in the home, like granite countertops, high-ends fixtures and wood floors. The condition of your home is taken into account during the appraisal; the appraiser will note worn carpets or floors, walls that need painting and other damage. In some cases, you might need to supply information about the appliances in the home, particularly if they will be included in the sale of the home.
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System Inspection
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To get an accurate picture of your home's condition, the appraiser will test the heating and air conditioning systems, and may test faucets and other fixtures to make sure they work. He'll note the age and condition of the furnace and water heater, and any other systems that may be present, such as water filtration systems. She will also look for signs of termite or water damage or other visible problems with the home's structure. The appraiser's report will also include information about any major renovations or repairs that have been completed on the home.
Appraiser's Report
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After the appraiser finishes the home inspection, he calculates the value of the home, taking into account the condition and features, as well as the location, lot and home size, comparable home sales, lease value and income potential. The appraiser's report is used to set the asking price for the house, or by the mortgage lender to determine the maximum amount it is willing to lend.
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References
- Photo Credit home 3 image by Stacey Lynn Payne from Fotolia.com
