Why do you need Residental Appraisal Services?
Whether you are purchasing a home for the first time, refinancing your mortgage to most likely a lower interest rate, or selling your home. Getting an appraisal is a key part of the transaction.
If you’re a buyer, seller, or homeowner interested in the value of your home. You want to understand the appraisal process and how the value of your home is determined. That way you can be an informed buyer and understand the numbers on an appraisal report.
What is a residential home appraisal Service?
An appraisal is an unbiased professional opinion of a property’s value. The word professional is important here because not just anyone can appraiser a home. When you get an appraisal you can be confident that you are working with a certified professional that is held to a high standard.
According to the Federal Deposit Insurance Corporation (FDIC). A real estate appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion as to the market value of an adequately described property as of a specific date(s), supported by the presentation and analysis of relevant market information.
A real estate appraisal is needed to determine the estimated market value of a house, condominium, commercial property, vacant land, etc.
Why does a lender require an Appraisal?
Lenders require an appraisal because they want to know what the value of a property is. They want to make sure that the property is worth the asking price. Keep in mind that the home will serve as collateral for the loan.
Therefore, if the homeowner were to default or breach the agreement of their contract. The lender can sell the property and recoup some if not all of the initial loan.
What hurts a home appraisal?
There are some circumstances that can have a negative impact on the value of your home. The good news is a lot of these things are in your control. That means you can do something about it, and you may be able to get a higher value.
- Maintenance: You need to make sure your home is in tip-top shape. You should check or have a professional check the HVAC systems, plumbing, chimney, appliances, water heater, roofing, etc.
- Curb appeal: The first thing the appraiser is going to see is the outside of your home. So make sure you spruce it up a bit.
- Dated home: Most of us love a mid-century bungalow that hasn’t been updated. However, when it comes to appraisal values. Having an updated home with features current buyers expect in a home is a plus. The key here is to not over update the home. You don’t want to go super expensive with your update if it doesn’t match what is offered in your neighborhood.
- Structural damage: Any unrepaired or ongoing structural damage can hurt your appraisal. Home appraisers are trained to look for telltale signs of structural damage, such as cracks in the walls or flooring.
How Long Does a Home Appraisal Take?
It all depends on the appraiser and the appraisal report that was ordered. In general, an appraisal can take 2-14 days to complete. However, some appraisals reports are instant, although you can’t use them when applying for a mortgage. You can expect an appraiser to be at your home from 1-3 hours depending on the size and scope of the work needed.
These instant reports are sometimes referred to as desktop appraisals. A desktop appraisal is a property valuation that is completed at the appraiser’s desk, using tax records and information listed on the MLS. It isn’t a traditional appraisal walk-through and by definition isn’t as thorough.
Here are some common uses of desktop appraisals:
- Loan servicing: Used to get an approximate value of subject property
- Refinance: Used by homeowners and lenders to refinance the current mortgage
- Portfolio evaluation: Used by real estate investors to evaluate properties
- Newer homes: The information on newer homes is public, generally accurate, and updated. They can be used for desktop appraisals.
What is the cost of a home appraisal?
A typical home appraisal is going to cost you around $300 to $450. The change in price depends on the size of the home, location, and scope of work that needs to be done. Although desktop appraisals can be useful and cheaper, they have limited uses.