An Overview of the Home Appraisal Process
If you are searching for your next home, chances are you will need a home appraisal. Banks require home appraisals for most mortgages because they want to make sure the home buyer will not default on their mortgage payments. In other words, the lenders use the home appraisal as a tool to determine if a person is too high a risk for a mortgage.
A home appraiser assesses the property and calculates how much the home will sell based on comparable homes in the local area. The bank uses this information as collateral when issuing a mortgage.
What is a home appraisal? How long does it take? What will I receive from a home appraisal report? Read on to get all of your questions about home appraisals answered.
What is a home appraisal?
A home appraisal involves an independent professional taking an accurate evaluation of your property. The appraisal provides the bank with a calculated value used as collateral for loans and mortgages or to determine how much you are entitled to if someone defaults on their mortgage payments.
How long does a home appraisal take?
Home appraisals take up to three hours depending on many factors: the size of the house, the complexity of floorplan functionality, amenities, current market trends, location, and more.
Who needs a home appraisal?
The appraiser performs the inspection to determine the home’s condition and then takes measurements used for calculation. A lender or potential mortgage holder most often commissions the appraisal – in this case, it’s mandatory if you’re applying for any mortgage on your property. It can also be requested independently by a homeowner or prospective buyer.
The appraiser will determine the property’s market value. The appraisal process can help establish a home’s “market value” by comparing it to recent sales. A home appraisal might be your best way of knowing what price range is fair for either transaction if you are considering buying or selling. Appraisers typically base their estimates on the age, location, and condition of the property.
What is a land appraisal?
A home appraisal doesn’t have to be an appraisal of only a home. Appraisers will also appraise the land on which a home sits – sometimes, this is called “land value.” For example, if you’re looking to buy or sell land for development purposes, it can be helpful to know how much you might get for your lot in terms of building square footage based on current market trends in your area.
When you hire a professional appraiser, they will walk through the house and take accurate measurements to determine your home’s worth. They will use complex formulas based on data from comparable homes in the area to help them arrive at an estimate for how much it would cost for a similar build.
Consider Hiring a Property Management Company
Property management companies are multifaceted in their approach to the sale and purchase of a property. A property manager often is a Jack (or Jackie) of all trades in the real estate industry. Property managers at Oak City Properties are familiar with every facet and role of the real estate industry, including home appraisal.
At Oak City Properties, we have been helping those in the Raleigh area purchase and sell homes for years! Whether you are a family trying to sell your home or a landlord wanting to downsize your rental portfolio, our full-service property management company is here to help.
If you are interested in learning more about our services or speak to our listing agents, give us a call at 919-232-9222 or send us a message.
Want to read more? Take a look at the following blogs about property management services.