Your Guide To Home Appraisal
You've located your perfect home, and now it's time to dot all your I's and cross all your T's before it's all yours. The home appraisal is one of the first items on your closing checklist. So, what is it exactly?
The home appraisal is essentially a valuation of the house and property. It is carried out by a certified third party and is used to establish whether the residence is reasonably valued.
During a home appraisal, the appraiser performs a thorough visual evaluation of the interior and outside of the home. He or she considers various elements, such as the home's floor plan functionality, condition, location, school district, fixtures, lot size, and other factors. If the house has a deck, a view, or a considerable yard, the price is usually raised. The appraiser will also compare the home to numerous similar properties that have sold in the region in the last six months.
A street map of the property and the ones being compared, images of the interior and exterior, an explanation of how the square footage was estimated, market sales data, public land records, and other information must be included in the final report.
Following completion, the lender examines the information gathered to confirm that the property is worth the amount invested. This protects the lender because the house serves as security for the mortgage. If the buyer defaults on the mortgage and the house go into foreclosure, the lender will usually sell it to recoup the money lent.