Lana-Ricky Perez
What to Know About The Appraisal Process
Lana-Ricky Perez's profile image
Aug 251 min read

馃搶Once you are under contract, your lender will send out an appraiser to make sure the purchase is in line with the property's value. 

鉁旓笍Appraisals help guide mortgage terms. The appraised value of a home is an important factor in the loan underwriting process. Although lenders may use the sale price to determine the amount of the mortgage they will offer, they generally only do so when the property is sold for less than the appraisal amount.

鉁旓笍Appraised value is not a concrete number. Appraisals provide a professional opinion of value, but they aren't an exact science. Appraisals may differ quite a bit depending on when they're done and who's doing them. Also, changes in market conditions can dramatically alter appraised value. 

鉁旓笍Appraised value doesn't represent the whole picture of home prices. There are special considerations that appraised value doesn't take into account, such as the need to sell rapidly.

鉁旓笍Appraisers use data from the recent past. Appraisals are often considered somewhat backward looking, because they use sold data from comparable properties (often nicknamed "comps") to help come up with a reasonable price. 

鉁旓笍There are uses for appraised value outside of the purchase process. For buying purposes, appraisals are usually used to determine market value or factor into the pricing equation. But other appraisals are used to determine insurance value, replacement value, and assessed value for property tax purposes.

Contact Form

For more information please fill out the form below