Appraisal

Prepared by a qualified professional (an appraiser), it is an estimation of a property's fair market value.  Because tax records are often incorrect, and computers are unable to distinguish the condition and quality of a home, a professional appraiser is contracted to physically inspect the property.  In home purchase/refinance, this is done before loan approval to ensure that the mortgage loan amount is not more than the value of the property.   In other instances such as divorce settlement or estate settlement, it is done so that interested parties are able to properly value assets for distribution.

It is also wise to get involved in the selection of an appraiser. Many lenders develop relationships with appraisers that have nothing to do with an honest evaluation of the real estate. If your appraiser comes from 100 miles away, chances are they know nothing of local market trends, neighborhood values or any detrimental facts that could affect a property's value.  It is in your best interest to select a local appraiser with experience and a reputation to uphold.

It can be typical to ask the seller to contribute to the appraisal costs. That would decrease the initial costs to you at the beginning. Let's talk!

Thank you,

Tamara Haney

208-284-0511

Related Links

• Appraiser
• USPAP