A few reasons why a real estate appraisal my be done on your home:
Buying a home – If you are buying a home and need a mortgage, the lender will ask to have an appraisal done to ensure the loan amount is appropriate to the overall selling price.
Selling a home – An appraisal is usually requested by the Buyer’s Lender for the mortgage, however, a seller may want another opinion of value when the Real Estate Agent establishes the listing price.
Refinance – This is similar to buying a home because the lender will want to ensure the loan amount is appropriate to the overall value of the property.
Home Equity Loan – You want to borrow money to, for example, update your kitchen or renovate your bathroom. The lender will want to know the current market value of your home and the amount you still owe on your mortgage when you bought the home. The difference between the current market value and the amount still owed on the mortgage is your equity in the home. The lender will want to see how much equity you have in your home, which will directly impact the line of credit available for a home equity loan.
What to expect when an appraiser comes to your door:
From the moment an appraiser from Terra Property Appraisals knocks on your door, you can expect punctual, courteous and professional service. The appraiser will greet you and introduce themselves.
The appraiser will begin by observing and recording details of the property (such as the number of bedrooms, bathrooms, garage spaces, etc.), to get a detailed overview of the condition of the property, to observe the functionality of the floorplan, and to observe other internal and external conditions that may or may not impact a property’s value (view, proximity to major traffic arterials, proximity to commercial property or park, infestations, water damage, etc.). Depending on the type of appraisal ordered and therefore detail level necessary of the appraisal, the appraiser will probably need to get all the way around the main structure’s exterior of your home (think locked gates, dog runs, etc.) Additionally, the appraiser may need access, if applicable, to the attic, basement, walk in closets, sunrooms, etc.
They will begin the appraisal with a quick visual observation of the exterior to help determine the best method for measuring the outside of your home. Using various measuring devices, including a tape measure, laser and/or measuring wheel, the appraiser will measure the entire outside of the building. Simultaneously, the appraiser will take notes on the general appearance and detailed condition of the property, as well as amenities, landscaping, lot size, view, proximity to larger arterials of traffic, etc. The appraiser will also take several pictures of the outside of the property.
The appraiser will next ask to come into the property to begin the interior inspection, continuing to take notes on the amenities and the condition on the interior. The appraiser will also continue taking pictures on the interior of the property.
The appraiser takes many notes to document the features, amenities and general condition of the property. The appraiser takes many pictures to document the overall condition and occasionally the defects that could impact a property’s overall value. For example, defects that could negatively impact a property’s value could be evidence of termite damage, evidence of fire damage in the attic, evidence of flood damage or leaky roof, evidence of foundation settling, etc.
The appraiser may take dozens of pictures on the exterior and the interior of the property. Some of the photos will end up in the appraisal report, but many will be used to remind the appraiser of a specific feature, detail or condition aspect to help the appraiser later on back at the office while developing the appraisal.
It is important to keep in mind that, although the appraiser will be taking a lot of photos to highlight the condition and features of your home, the appraiser does not appraise housekeeping. Pictures of dishes in the sink, an unmade bed, a cluttered bathroom vanity top, will have no material impact on the property’s overall value.
The appraiser will ask you about any recent improvements, such as updates to your your kitchen or bathroom, if the major components of the property have been recently replaced, such as the roof, water heater, furnace, cooling system, remodeling, flooring, etc. The appraiser will document these with notes and pictures. If the appraiser doesn’t ask about these things, they may have felt that they were able to observe and record such updates. However, please feel free to bring these things to the appraiser’s attention, even if they did not ask. And please feel free to ask any question that you may think of about the appraisal process before, during or after the appraisal inspection.
A typical appraisal inspection can be completed in about an hour.