If you are selling a house or buying one, you can expect you'll need a real estate appraisal. The lender offering the loan to the person buying the house needs to know the home's value. An appraisal tells the buyer and lender the home's value, but an appraisal requires a few steps. Here are some of the main steps the appraiser takes to determine the value of the house in question.
They Research the Home's Background
A typical appraiser will not visit the home in question first. Instead, they will generally research the home's background before scheduling an appointment to see the property. During this research, the appraiser will look at numerous things about the house. First, they might look at the property tax assessment and costs. Next, they will look at the home's age and history. They will also look at the survey and other details about the property to get an idea of what the house offers.
They Inspect the House
Next, the appraiser will visit the home to inspect it. During this inspection, the appraiser might measure the house to ensure that it is the size it states. They will also look at the details of the home, such as the age of the windows, roof, and HVAC system. They will look for upgrades that could potentially increase the home's value, but they will also look for flaws that could decrease the value.
They Compare the Home to Other Properties
The next step of the process is comparing the home to other properties. When the appraiser does this, they look for homes that recently sold. They compare these houses to your home to narrow down the current market values for homes like yours.
They Write the Report and Determine the Value
When the appraiser completes these steps, they will begin working on the report. They will consider every factor they noticed during these steps as they determine how much your house is worth. They will write everything down on the report, and they will include the addresses of the homes they compared your house to when completing the process. The report will state how much your house is currently worth.
These are the steps you can expect during a home appraisal, and you should realize that you will need one if you are buying or selling a property. If you have questions about appraisals, talk to your real estate agent or a local appraiser.