Making Sense of Home Appraisals
What is a Home Appraisal?
A home appraisal is a professional’s unbiased opinion on the value a home. A home appraisal is almost always needed in purchase and sale transactions to determine if a home’s contract price is appropriate. In a refinance, lenders use home appraisals to ensure they are not giving a borrower more money than a home is worth.
Home Appraisal Factors
Many factors go into calculating a home’s value during a home appraisal. Most importantly, recently sold comparable properties, known as or “Comps”, must be considered. Comps should be similar in location, size, style, room count, condition, utility, etc.The theory behind comps is that your home is worth whatever others would be willing to pay for it – and the best way to determine how much people are willing to pay is by discovering how much they’ve paid for similar homes (or comps).
Art of Home Appraisals
Appraisal is part art and part science, and the latter is hard to change. Sometimes, the hardest thing for home owners is to be objective about their own homes. Always realize the appraiser is limited to the true comps available, and those comps will not always support the value you may expect.
To influence the “art” part of the equation, keep your home in good condition. Present your home for appraisal as you would for sale. Prepare written information regarding improvements, and offer an extra copy for your appraiser to keep. Be punctual, courteous and respectful, and your appraiser will the best that can be done.
Questions on Home Appraisals?
If you have a question about home appraisals, please contact one of our licensed Inlanta Mortgage loan officers using our branch locator. If you are ready to begin the home buying journey apply directly with a loan officer near you or Apply Online now and we will connect you to a licensed mortgage professional in your area.
About Inlanta Mortgage
Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.
Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.
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