Home Appraisal Process From the Lender’s Perspective
An appraisal gives your buyer and their lender an estimate of a home’s value and helps make sure your offer, and the purchase price, is in line with the home’s fair market value. During the appraisal process, the home is inspected and compared to similar homes in the area that have been sold within the last six to twelve months. While PrimeLending chooses who will conduct the appraisal, this is generally an expense paid for by the buyer. Some things that are considered in the appraisal include:
- Recent sale price of comparable homes
- Square footage
- Number of bedrooms and bathrooms
- Overall condition of property
- Quality of landscaping
- Amenities like swimming pools
- Unique characteristics
- Lot size
- Visual inspections of the foundation, plumbing and electrical systems
- Finishing details such as hardwood floors or updated lighting
- Size and quality of basement and attic
- Surrounding neighborhood and area
It’s important to note the appraisal is different than the home inspection, which occurs after the sales contract is signed. The appraisal primarily documents obvious visual conditions, along with cost and size comparison to other homes.
Are you curious or have questions about the appraisal process and turn times in our market? Connect with of our Home Loan Experts by visiting our Website at http://lo.primelending.com/Dayton to get more information.