An appraisal is an important step in purchasing your new home. When you apply for a mortgage (to refinance or purchase your home), the bank will order an appraisal. It’s the estimated amount of money the home is worth, based on the analysis of an independent third party who estimates the value of real estate. Lenders require an appraisal to make sure that the mortgage amount is not more than the value of the property.
The appraiser will not value personal property such as furniture, but will value real property like land and the structure itself.The measurements are taken from the outside to determine square footage, and the appraiser will take things like number of bedrooms and baths into consideration, as well as the general condition and functional layout of the home. The appraiser will also look at similar homes in the area that have recently sold in order to come up with an estimated value.
