Because purchasing and closing on a new home can be a complex process, I try to simplify it for my clients by sharing this straightforward explanation of getting an appraisal on the home you intend to buy.
What's a home appraisal?
Your new home’s value is determined through a professional appraisal usually ordered by your lender. When it comes to determining real estate values, home appraisers take into account numerous factors, including but not limited to the following:
What do lenders look for in an appraisal?
Appraisals are important to mortgage lenders, as they want to validate both the condition of the home and its comparable market value. Typically the most thorough and accurate appraisals come from appraisers who know a particular neighborhood well and its comparative home sales - or "comps" - exceptionally well. While the selection of appraisers is randomized by regulation, I can recommend a proven lender that prefers to work with a pool of local appraisers, who are more likely to understand a property's value based on its specific location and most recent comps.
