Your Guide to the Home Appraisal
You’ve found your dream home and now it’s time to cross all your T's and dot all your I's
before it’s all your own. And one of the first items on your closing checklist is the home appraisal.
So, what exactly is that?
The home appraisal is essentially a value assessment of the home and property. It is conducted
by a certified third party and is used to determine whether the home is priced appropriately.
During a home appraisal, the appraiser conducts a complete visual inspection of the interior and
exterior of the home. He or she factors in a variety of things, including the home’s floor plan
functionality, condition, location, school district, fixtures, lot size, and more. An upward adjustment
is generally made if the home has a deck, a view, or a large yard. The appraiser will also compare the
home to several similar homes that were sold within the last six months in the area.
The final report must include a street map showing the property and the ones compared, photographs
of the interior and exterior, an explanation of how the square footage was calculated, market sales
data, public land records, and more.
After it is complete, the lender uses the information found to ensure that the property is worth the
amount they are investing. This is a safeguard for the lender as the home acts as collateral for the
mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells
the home to recover the money borrowed.
If you have additional questions, feel free to give our team a call. We are happy to help!