Understanding the Home Appraisal Process

Understanding the Home Appraisal Process

 

A home appraisal is a required part of the loan process, and is conducted by a certified appraiser who evaluates and determines the property’s fair market value.

The appraiser’s report includes a detailed look at the home’s general condition and a review of the surrounding area. Since housing markets fluctuate—as do home values—appraisers rely heavily on recent home sales within the last six months in the local area to determine fair market values.

For buyers, appraisals can be a safeguard to ensure that a home’s sales price is reasonable, and that the property is in a good and safe condition to meet the lender’s requirements. For sellers, appraisals also take into consideration any improvements and upgrades, as well as the land’s value.

It is important to know that appraisal guidelines are dictated by lenders and the law. In many states, lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

 

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AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 1­877­276­1974. Copyright 2017. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. AZ: Arizona Mortgage Banker License No. BK0013635; CA: Licensed by The Department of Business Oversight under the California Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; WA: Washington Consumer Loan Company License No. CL­145368. AmeriFirst Financial, Inc. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA). Karen Jones is a licensed loan originator at AmeriFirst Financial.,Inc. Karen Jones complies with all regulations and rules of all government agencies and regulators including the Real Estate Settlement and Procedures Act. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.

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