The Home Appraisal

Are you thinking about buying or selling a home, but are not exactly sure just what the home is really worth? A home appraisal is a good tool for anyone engaging in a real estate transaction, as it sets the true value of a home that is either on the market or about to be listed on the market.

Appraisal vs a CMA

A lot of the information which goes into a home appraisal is similar to that which goes into a comparative market analysis, and many of the steps are the same as well. The difference is that an appraisal is conducted by a professional appraiser, who has been licensed for the specific activity by the state you are in.

Unlike real estate agents, who conduct CMAs, the appraiser has no vested interest in the home. They aren't trying to sell it or get a job selling it, just in determining the true value of a home.

Getting ready for an appraisal

When you make an appointment with a home appraiser, you want to make sure your house is in the best shape possible. Think of it the same way you would if a potential buyer was coming by. Just as you want the highest price for the home, so too do you want to know what the possible highest price is.

You should clean the house up before the appraiser comes, including all minor repairs and renovations needed to both the interior and the exterior. Make sure to tell the appraiser about any improvements you have made to the home, both large and small. New furnaces, new windows or doors, and finished basements are good things to inform the appraiser about.

The most important thing to remember is to work with the appraiser. It can be nerve wracking allowing someone access to your home, but remember that you are about to get a valuable tool which can help you sell a home or to get a loan to buy one.

Buyers are the most common users of appraisers, or rather their lending institutions are. Banks and others want to make sure that the house they are about to loan a person money for is truly worth the price being paid, in case of default.

However, sellers can use an appraisal as well, to determine the exact value of their house. A private appraisal will usually cost around $400.