Home Appraisal Process - How It Works

Written by Posted On Thursday, 25 August 2016 12:22

You are looking to buy a property and you have gone to the bank for a loan. But they can’t give you a single cent until you prove the value of the home you wish to buy. How do you go about doing that? Through a professional appraisal, that’s how!

What Is An Appraisal?

An appraisal is an estimated home value given to a property by someone trained in real estate. The appraiser goes to the home, considers its condition (including potential problems with wiring, plumbing, etc) as well as other houses in the neighborhood.

Using this information, they will come up with an estimated value to give to your bank. Your bank then uses that appraisal amount for the sale, and to figure out the necessary mortgage amount.

When selling a home, the seller will get their own appraisal when putting the house on the market. But having your own can help you make an informed decision before buying.

Can I Get a House Without An Appraiser?

Technically, it could be possible if you are doing a direct, cash down sale with the homeowner. But it isn’t recommended, and depending on your area it may not be legal.

An appraisal protects everyone involved, from the seller who wants the most from their sale, to the buyer who doesn’t want to overspend, to the bank that wants to make sure they loan you the right amount.

How Do I Find an Appraiser?

If you have a real estate agent, they can either put you in touch with an appraiser, or handle it through their office. It is one of the many benefits of having a professional in property sales and value working on your behalf.

For those who prefer to find an appraiser on their own, there are some things you should look for:

  • They have some kind of degree or license in real estate.
  • They have a proven track record of house sales.
  • They have been in the business for at least a few years, the longer the time, the better.
  • They are able to provide a rundown of what they will be looking for in the appraisal process.

Remember that an appraiser is there to protect your interests, not the banks.

What If I Don’t Agree With The Appraiser?

It is possible to challenge the appraiser’s findings. You can file an official request for an explanation of the appraisal, or ask for another to be done. You can also find another appraiser for a second opinion.

But keep in mind that appraisers follow by a carefully plotted checklist, and have experience and training under their belt.

Find out more about real estate and homeownership at Jensen and Company.

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Brad Jensen

Brad Jensen has been in the Real Estate market since 1988. He is one of the most respected agents in the Park City, Utah area and would love to assist you in selling your home or buying a new home. Jensen and Company is here to help make your life easier as you follow your goals and dreams. Our blog has lots of great information and education to help you learn more about the Park City Real Estate market. Please contact us if you have any questions, we would be happy to assist you.


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