An appraisal is designed to verify the value of a home. For lending purposes, it is used to secure a loan. An appraisal helps to determine the amount a homebuyer can borrow.
The appraisal is a process used to protect the buyer, seller and lender. It is usually paid for by the buyer, but this can be negotiable.
By definition, appraisal is the market analysis of a real estate property. An appraisal measures the dollar value of a property, based upon the size, quality and location of the property, as well as supply and demand.
The analysis covers the property in question, and compares it to comparable property based upon location and market value, as well as time spent on the market, square footage, features and terms.
While an appraisal is extensive, it does not cover a technical analysis of construction, structural stability or compliance with building requirements. These aspects are covered during a home inspection.
The best way to find an appraiser is to get a recommendation from your lender or agent. |