Appraisal News

People can sometimes confuse the home inspector with the home appraiser: A home inspector is hired by the buyer of a particular property prior to the execution of the sale.  The home inspector works on behalf of the buyer and will examine all major components of the home and note any deficiencies.  They will look at the electrical system, the roof, the plumbing, overrall condition and make certain that everything is functioning. On the other hand, the appraiser is there to provide a value based on the overrall condition of the home and the sales prices of homes in the immediate area.  While the appraiser may take note of damages, etc. within the home, their main priority is to note the value.

If you have ever purchased real estate or refinanced your home, you have more than likely been exposed to an appraiser: An appraisal is typically ordered by the mortgage lender and is utilized to ensure that your home will be valued at or above what you purchasing the home for.  An appraiser is a licensed professional individual and may spend about an hour in your home or at the home that you are seeking to purchase.

The appraiser takes notes such as square footage of the home, may draw a quick ’site map’ of the home, indicate each room, number of bedrooms and bathrooms and whether you have some extras or amenities such as a fireplace, intercom, swimming pool, etc.  Simply put, the appraiser’s job is to place a value on the home based on the home’s condition as well as how the home compares to other recent real estate sales in your particular neighborhood.   Once the appraiser has completed the on-site inspection, they will complete a formal appraisal which typically includes a valuation summary as well as home images and floorplan sketches.  The report is then turned back over to the mortgage lender or the individual who ordered it.