A Guide to Home Appraisals

A GUIDE TO HOME APPRAISALS This is a guide to home appraisals and should help you as you navigate through the process of buying a home in today's real estate market. In the event that you are buying a house, the form of appraisal you want is a "market value appraisal," which will provide you with the fairest result. Just another reason why a guide to home appraisals is so important! What is a home appraisal? A home appraisal is, put most simply, an evaluation of the cash value of a house and property. BASED ON FACTORS SUCH AS: HOME SSIZE NUMBER OF ROOMS CONDITION VISUAL APPEAL LOCATION AMENITIES The appraisal value must be based upon a legal concept known as IMPORTANT TO NOTE "HIGHEST AND BEST USE" While there are standardized guidelines for appraisers to use, the appraisal is legally defined as an informed which states simply that the appraised value of an item of real estate must be based upon professional opinion comprised of a series of educated assumptions, and as such it is open to interpretation and appeal. HOW THE PROPERTY MIGHT BEST BE USED NOT HOW IT IS BEING USED AT THE TIME OF SALE 4 TIPS Finding a Professional Appraiser Make certain that they are licensed to perform real estate appraisals by the state in which you are buying your home. Do not be afraid to ask for their credentials. Make sure they are experienced at working with consumers as opposed to real estate professionals only. A home's market value appraisal is based upon different factors than that of commercial real estate. Ideally, they are familiar with the neighborhood; if a number of houses have sold in the neighborhood recently, getting the appraiser who appraised one or more of those homes can be helpful. Appealing a Home Appraisal Most lenders are open to appeals in the event that an appraiser may have made a mistake, but you will need to present evidence to back up your case: this involves reading the appraiser's report carefully. APPEAL PROCESS FOR BUYERS AND SELLERS: Take the appraisal report to the lender or other institution with whom there is an issue. Explain any mistakes that were made, from your point of view. Make a special point of highlighting mistakes which are readily quantifiable. One part of the appraisal report will be a list of LOOK AT THE LIST OF COMPS AND ASK THESE QUESTIONS "COMPS" How much did each house sell for? chosen by the appraiser. These are comparable houses, in the same neighborhood which have Does the house have any advantages over the homes listed as "comparable" in the appraisal report? SOLD IN THE LAST SIX MONTHS Does it sit on more land, or have more bedrooms, more bathrooms, or a greater square footage? Now that you know how to find a solid appraiser, and how to appeal if fortune forbid there is an issue of some kind, the overall procedure will hopefully be a little bit less stressful. For more useful real estate information check out: www.SELLINGWARNERROBINS.COM COLDWELL BANKER O (478) 960-8055 (C) / (478) 953-8595 x227 (O) www.COLDWELLBANKERSSK.COM SSK, REALTORS CANITA CLARK Source: http://sellingwamerrobins.com/2014/08/guide-to-home-appraisals/