What Buyers Need To Know About The Appraisal Process

The home appraisal process is an important step toward securing a home loan.

It can also be one of the more confusing steps in the process for buyers. Whether you're going through the process for the first time or you've been there before, understanding what to expect from your appraisal, why it's important, and how it works will make life much easier when the time comes.

• Your Home Appraisal Guide
  When you apply for a home loan, the lender needs to determine the home's exact value before they will offer a loan. A home appraisal is an unbiased review of the value of the home, which the lender uses to make sure that the value of the loan matches the real value of the home. This is a crucial step because the home acts as collateral for the loan, and the lender needs to protect itself in the event of foreclosure.
  
  
• How Does a Home Appraisal Work?
  The appraiser plays an important role in the home buying process and serves as an impartial observer to establish a fair, accurate value for your home. The appraiser should be licensed or certified with a deep understanding of your local real estate market. Your lender will normally take care of the details for arranging the appraisal. You will be responsible for the cost.
  
  The actual appraisal process doesn't require much input from the buyer until the end. The appraisal allows you to understand how the appraiser established the home's value and see whether you disagree with any aspects of the appraisal. You will not be dealing with the appraiser directly, so it's important to be prepared to review the final report of value.
  
  
• How Is the Value of the Home Determined?
  The home appraiser will determine the value of your home based on a few factors, which will likely be familiar to anyone shopping for a home. The size of the home both indoors and out, along with the number of bedrooms and bathrooms, the condition of the home, the neighborhood where the home is located, and the value of comparable homes sold in the area. The final report of value accounts for all of these factors to provide a comprehensive picture of the home's value.
  
  
• This Sounds a lot Like a Home Inspection
  And there are indeed many similarities! However, a home inspection is used to determine whether any repairs are needed for the home and how much those repairs will cost. The appraisal is a deeper look at the home, with a specific focus on establishing value.
  
  
• What If I Don't Like the Results?
  As a buyer, a lower-than-expected appraisal can actually be a valuable negotiating tool, as you can request that the seller lower the asking price to match what the lender will offer. If you believe that the appraiser made a mistake or miscalculated the home's value, you can request another review with a different appraiser.

Getting through the home appraisal process is a key milestone in purchasing a home, so it's great to be prepared when the time comes. If you have specific questions about your home appraisal, speak with your real estate agent or lender to learn more.

• 6 Easy DIY Insulation Projects
• Help For Choosing The Right Siding
• You Might Have A Drainage Problem If…
• How To Pick Window Treatments For Your Home
• 10 Reasons To Start Green Cleaning Today
• 10 Tools For the New DIYer
• 5 Simple Ways To Allergy-Proof Your Home
• Is Your Garage A Disaster?
• Home Renovation Projects Well Worth The Investment
• 6 DIY Projects For Newbies

• Closet Organization — It's A Thing
• Welcome Guests (And Buyers) With A Showstopping Front Door

• Red Flags To Watch For At An Open House
• Buying A Home? Minimize The Time & Maximize The Results
• 7 Things Everyone Should Do In A New Neighborhood
• Make Any Move Easier With This Simple List
• 5 Tips For Buying A Home In A Different State
• Here's Your Home Buying Blueprint
• Home Buying Advice: Seal The Deal With Your Purchase Offer
• 5 Mistakes To Avoid In Your First Year As A Homeowner
• 4 Benefits Of Buying A Home When You're Young
• What Is Private Mortgage Insurance?

• Scouting Out Your New Neighborhood
• What Does Sale Pending Mean?

• How To Tell Which Offer Is The Best One
• 10 Signs You've Outgrown Your Home
• What Every Home Seller Needs To Know About Closing Day
• Selling Your Home? Here's What You Need to Know
• Staging Mistakes That Can Sabotage Your Sale
• 8 Tips For Ousting Awful Pet Smells From Your Home
• Selling A Home? Don't Bother To Fix These Things
• Buyers Will Text
• Kitchens Sell Houses
• 6 Step-By-Step Home Selling Tips

• Rookie Mistakes That Can Bench Your Home Sale
• The Top Reasons Why People Move