Real Estate Appraisal

A real estate appraisal is how a lender determines the value of a home you are asking them to lend you money on.

The real estate appraisal is a lender cost that most purchasers will pay for when they make mortgage application. The cost of the appraisal will vary slightly depending on the borrower’s choice of financial institution. Your loan originator should provide you a good faith estimate outlining the costs associated with purchasing a home including the cost of the appraisal.

The appraiser should have no interest in the property. Their opinion of value is determined by comparing the subject home to recently sold homes in the neighborhood, calculating the cost per square foot for construction and accounting for improvements and upgrades to the subject property.

Please do not confuse an appraisal with a home inspection. While an appraiser may note a condition needing repair, their job is not to inspect the home’s warranted items. You should always get a home inspection to determine condition.

Appraisal Scoop

A real estate appraisal differs from a market analysis or BPO performed by a real estate agent. While most market analysis reports generally are close to the final appraised value, a lender requires a third party to complete a detailed appraisal before approving your loan.

Contact me, 407-304-0255, to be placed in contact with a professional mortgage consultant who will further explain the appraisal and home loan process. This consultation is free and without further obligation to you.