If you’re financing a home, your lender will require you to have an appraisal. You don’t get to choose the appraiser – the lender does – but you’ll still have to pay for it.
But what’s an appraisal for, and what will it tell you?
What is an Appraisal?
An appraisal is a detailed document prepared by an appraiser—someone who’s trained to find out how much a home is worth—that tells you and the lender whether you’re making a solid investment. If the appraisal is lower than the asking price of the home, the lender may choose not to give you a mortgage loan to purchase it.
What’s on an Appraisal?
The appraisal you’ll receive is very detailed. It shows how much the home is worth based on its location, features, and the other homes around it. The appraiser evaluates sales data from recent months to help determine how much the home is worth, as well.
You’ll find information such as:
- Property details, such as how many bathrooms, bedrooms, and other rooms it has
- Side-by-side comparisons to other, similar properties
- An evaluation of the entire real estate market in the area
- Lists and statements of things the appraiser deems harmful to the property’s value
- Lists and statements of serious flaws
- How long the appraiser thinks it will take to sell the home
- The type of property and area in which it’s located
ARE YOU BUYING A HOME ALONG 30A?