![]() It is prohibited for an appraiser to have a direct or indirect interest in the transaction for the property being appraised. ![]() They should also be familiar with the property’s surrounding town or neighborhood, because, as we’ll explain later, the area around the house is a factor in the appraisal.Īnother important qualification for an appraiser is impartiality. Home appraisals are almost always used in home purchases (unless the purchaser is an all-cash buyer) and commonly used in mortgage refinancing.Īfter the seller accepts an offer, the bank giving the potential buyers their mortgage will order an appraisal, which the buyers must pay for.Īn appraiser must be certified and licensed to practice in the state where the property is located. It’s one of the preliminary steps in the closing process. The home appraisal is a professional, unbiased assessment of the value of a property (also called the true or fair market value). So let’s dive into the home appraisal – what it is, what it involves, and how to make it work for you. It may seem harsh to let a stranger take a few laps around your home and boil your beloved abode down to a single number, but it’s actually good to have this unbiased, emotion-free step in the process.īecause the house itself is collateral in a mortgage, the bank or lender needs to make sure there’s enough value in the house to recoup the investment if the buyer can’t pay back the mortgage.īasically, the home appraisal is a way of protecting the bank from over investing in a property, which gives the bank the confidence to give the buyers their mortgage, which means the owner gets to sell the house! ![]() But there’s one step in the process where objectivity and rationality take center stage, and that’s the home appraisal. Buying a home is an exciting, scrapbook-worthy event, so of course it’s going to come with a lot of emotions.
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