Frequently Asked Questions
What is an appraisal?
An appraisal is an unbiased opinion of a specific property’s value on a given date. A majority of appraisals are performed for companies involved in real estate financing. When a single-family residence is purchase almost everyone takes out a loan to cover the majority of the cost of the house. Lenders need to be sure that the value of the real estate being used as collateral is sufficient to cover the amount of the loan. Appraisals are required whenever property is bought, sold, refinanced, assessed, for estate purposes and in some cases divorce settlement.
What does an appraiser do?
An appraiser is a person who is expected to value property in a competent, objective, and impartial manner. The professional appraiser, because of training, experience, and ethics is responsible for giving clients an objective opinion of value, reached without bias. The appraiser must remember to be a neutral party, responding only to the forces affecting value and not to people with special interested who might want to influence his or her judgment.
Difference between an appraisal inspection and a home inspection?
Appraisers do not complete residential property inspections and are not home inspectors. The appraiser formulates an opinion of the property’s value, while a homes inspector educates the buyer about the condition of the home and its major components. The appraiser is primarily focused on the value of the home whereas the inspector keys in on the home’s condition with an eye toward both existing and potential future problems.
How to get ready for the appraisal inspection?
Make sure the appraiser has easy access to the exterior and all interior rooms of your house. Appraisers observe signs of neglect such as cracked walls, chipped paint, broken windows, torn carpets, damaging flooring, and inoperable appliances, so make sure to fix any signs of obvious neglect. A clean, well-presented home is not necessary or a requirement however can help with the inspection and can go along way in the overall appearance of the property. Make sure all safety equipment is installed, including smoke alarms and carbon monoxide alarms. Finally, inform the appraiser of any home improvements you have completed.
What home renovations add the most value?
The answer to this is different depending upon the location of the home. Different markets value amenities differently. Adding a central air conditioner in Houston, Texas may add significant value, while putting one in a home located in Buffalo, New York might not have much impact.