When you purchase a home, it is important that you receive the fairest sales price possible. Lenders hire an independent home appraiser to judge if the price of a home is fair based on the price of the other homes in the area of comparable size and value. The fee is typically paid by the buyer as part of the closing costs.
The appraiser’s job is to determine the current market value of the property. They will conduct many tasks on site such as home walkthroughs, property walks, and additional reviews of the property.
A few key features of the home that the appraiser will be interested in are:
- Property size – The appraiser will consider the overall size of the home in their valuation. The number of bedrooms and bathrooms in addition to the home’s square footage will also be considered in the value.
- Exterior – The appraiser will thoroughly assess the exterior of the home as well as the surrounding property. This involves examining the home’s structure, foundation, siding and roof to discover the materials they are made from and their overall condition.
- Interior – The appraiser will carefully examine the interior of the home. Not only will the appraiser examine the main construction such as the walls, flooring, windows and doors, but they will also look carefully at light fixtures, kitchen appliances and plumbing.
- Improvements and upgrades – Enhancements made by the seller since purchasing the home are also taken into consideration, as they could affect the value. Any extra features of the home, such as a swimming pool or outdoor kitchen, will be examined by the home appraiser as well.
The appraisal usually takes one or two hours to complete. After the appraisal report is finalized, the buyer will receive a copy that states the property conditions and the appraiser’s assessed value.
As the buyer, it is in your best interest to know the house’s value compared with similar homes in the market, and it is required to receive your home loan approval. Working with a company like Fairway makes buying a home easy. I am always happy to talk you through the appraisal process and answer any questions you may have.Tags: Mortgage Terms