During the course of a home purchase the buyer’s lender will want to verify whether or not the amount of money they are lending toward the home is valid. Mortgage lenders will require that an appraisal will be performed on the subject property, thus an appraiser licensed by the state is hired to seek market value for the home.
An appraisal can be defined is an unbiased estimate of opinion of a specific property’s value on a given date. An appraiser is expected to determine the value in a competent, objective, and impartial manner. Their opinion of value is issued in an appraisal report, and includes research, analysis, and all relevant data regarding the home.
The following steps are normally taken by appraisers when compiling the report:
Once the process is complete the appraiser determines a final value estimate to present to the client. Depending upon a client’s needs or the lender’s requirements, the appraiser may have to compile an exhaustive report. Or, he may only be required to state the research and value in a simple summary comprised of just a few pages.
Have more questions about the appraisal process? Give me a call at (760) 382-1082 and let’s talk further about home values and the important role an appraiser plays in the purchase or sale of your home!