Is a house appraisal necessary to buy or sell a home? In this article we give some facts and advice about house appraisals.
You may be wondering if there is a difference between an inspection and an appraisal. The answer is yes, there is a difference. An inspection notifies the buyer of any potential issues with the home that may need to be fixed.
An appraisal simply tells the lender and buyer how much the property is worth, and helps the lender decide whether or not to give a loan to the buyer.
The way an appraisal works is that an appraiser looks at the home to determine its value. They look at both the interior and exterior of the property. In addition to the property in question, the appraiser looks at dozens of other comparable properties in the area. They can also use the selling price of the property to determine the value of the home.
The house appraisal is not a one-step process. If the buyer or seller does not agree with the appraisal they can challenge it, renegotiate the price, or give a different offer. The appraisal document is provided to both the buyer and seller for their review.
These are some basic facts about the house appraisal process. For more tips watch the linked video..