What is a Home Appraisal and Why you should know about them?
Whenever someone buys or sells a home, the Home Appraisal process is done to determine the Market Value of the Property.
The appraisal process can include recent sales information for similar properties, the current condition of the property, and the location of the property, i.e., insight as to how the neighborhood impacts the property’s value.
Often Home Appraisal is from your mortgage lender (mostly banks) who will require you to get an appraisal on the home you want to buy or refinance before they will lend you the money. This helps them ensure the property could sell for the amount of money they are lending you.
A home appraisal is conducted by an “expert” licensed appraiser assigned to your case by a bank or other lending institution (generally at random, based on new banking regulations).
An appraisal can be overvalued or undervalued, If you’re unsatisfied with an appraisal, you may be able to ask for a second appraisal through some lenders. Since the process is subjective, you may as well do what you can to take advantage of it.