An appraisal is an unbiased professional opinion of a home's value. A qualified appraiser creates a report based on an in-person inspection, noting the details of the home, including its size, condition, floor plan, location, amenities and several other factors. Research is made to uncover comparable properties that have recently sold or are for sale in the area along with current market trends. Once the information has been gathered, the appraiser will put together a report, making adjustments, based on the market, on how these comparables relate to the subject property and then arriving at a final opinion of value.
Only a State licensed or certified appraiser can complete an appraisal. Real estate appraisers in all 50 states must be either licensed or certified to perform an appraisal.
No, a realtor cannot legally complete a formal appraisal. Only a licensed appraiser can perform an appraisal as it requires specific training and certification. While realtors can provide a Comparative Market Analysis (CMA) which offers an opinion of value, it is not considered a full appraisal as it lacks the rigorous standards and independence evaluations required by appraisal regulations.
An appraisal provides an independent, professional assessment of the property's market value for your lender. It is used to determine if the purchase price is reasonable and to make sure they are not lending more money than the house is worth. It also protects the buyer from overpaying.
Yes, an appraisal is almost always required when purchasing a home, if you are taking out a mortgage. It is required by the lender. Additionally, if you are paying for a home in cash, an appraisal can make sure you are not overpaying.
A pre-listing appraisal is one that is done prior to listing a home for sale. Its purpose is to provide a professional opinion of value to set a market-based list price. The reasoning behind a pre-listing appraisal is that the appraisal value will help sell the home for the highest market supported price in a reasonable amount of time.
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