HOME APPRAISAL: WHAT DOES IT MEAN?

Congratulations! You want to sell your house and want to obtain top dollar for it.  Or, you are a buyer and want to be sure you are paying a fair market value for a home.  The common answer to ensure that both parties are getting what they want for a particular property you will need a Home Appraisal.

By definition an appraisal is "an opinion of value".  A professionally licensed or certified appraiser will make calculations to determine a value for a home.  The appraiser will look at comparable properties that have sold in your area and use a formula to arrive at a property value.

The most common reason for an appraisal is when someone buys or refinances a home.  Lenders use an appraisal to make sure they are not over lending on a property and helps protect buyers from over paying for a home.

Counties also perform house appraisals in an effort to calculate property taxes.  These appraisals are usually done with less attention to detail than a lender would require.  The appraisal amount is used to determine property taxes.

A licensed or certified appraiser is specially trained to conduct this valuation.  They will examine houses that have sold and use statistical data such as square footage of home, lot size, condition of home and amenities, among other considerations.  Appraisers are taught mathematical formulas that are used to come up with a house value.

"Market value" or "Comparative market analysis" are two ways to estimate home value using the prices of what similar homes actually sold for, but remember only a licensed appraiser can give an actual appraisal.