What Is An Appraisal?
This is a key question many purchasers of real estate ask during the mortgage review process.
Simply, it is the assessment of fair market value of real estate based on established criteria such as size, location, condition, age, and features.
Indeed, when financing real estate, the appraisal will be one of the key determining factors to help a lender decide how much to loan to you.
Every house and property is unique; appraisers are trained and licensed to establish an unbiased, professional and independent value for a property.
Appraisers don’t work for the buyer or the seller; their primary mission is actually to protect the lender who’s risking money against the home’s value.
Appraisers have to weigh factors about the property and location – including size, condition and comparable properties – to appraise its current value.
They know how to focus on conditions that affect value; dishes in the sink don’t affect appraised value; damage and neglect do.
Appraisals lower than the proposed purchase price can affect transaction details. The seller might have to lower the price or the buyer might have to increase down payment or fund additional escrow.
What Is An Appraisal? Learn the Facts!
An appraisal seems a lot like an inspection, but they’re not the same.
You can think of it this way:
Appraisers report on value to the lender
Inspectors report on condition of the house and major components to the buyer.
So – expect both appraisal & inspection in your transaction.
We hope the video above helps to answer other questions you may have about your appraisal.
And let us help if you have questions, too. As the oldest and most established title company in Naples, we have earned the trust of purchasers and real estate professionals.
Indeed, for nearly 40 years, we have been the FIRST choice when selecting a title company in Naples and Marco Island.
We thrive on “Putting You FIRST!”
Please don’t hesitate to call us!