What is a Home Appraisal?

A home appraisal is an independent valuation of a home to determine its market value.

In general, a home appraisal is organized by a lender and is usually paid for by a buyer. All loans require an independent appraisal.

The reason the lender requires an appraisal is that you may think a home is worth more money than it really is — leading you to make an offer that may be to high. If the appraiser leads the lender to believe the home is overvalued, lender may feel this is a risk and may not grant you a mortgage.

Basically, lenders want to protect themselves by ensuring the property you are considering buying a loan from their institution is worth its market value. The appraisal helps ensure that you, the buyer, do not end up having negative equity on a home.

The Importance of an Appraisal

Getting a home appraised is extremely important for several reasons. As mentioned above, it can help you find out how much a property is worth. It can also help you lower your taxes and eliminate private mortgage insurance.

A licensed appraiser can also help you with estate planning, analyzing the feasibility of proposed improvements, determing the best use of a property and insurance valuations.

The Appraisal Process

An appraiser’s duty is to inspect the property being appraised to ascertain the true status of that property. Toward this end, an appraiser will analyze market data, including both historic and current comparable sales, current offers, pending sales and proposed improvements to arrive at an appraised value for your home. The appraiser will also compare your property to the broader market. Depending on the purpose of the appraisal, the appraiser might choose to weigh diffent factors more heavily than others.

Unmatched Customer Service

At Connor Edwards, LLC, in addition to delivering high-quality appraisals, we also deliver industry-leading customer service. We will answer your questions, provide relevant recommendations, and work with you to resolve any issues that may arise in the quickest, most convenient manner possible.

You can also count on your report being clearly written, understandable and meeting or exceeding the Uniform Standards of Professional Practice that govern the appraisal industry.

If you have any questions regarding your appraisal, after you’ve read the report, we encourage you to email or call us (410-744-6868).

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