By: G. M. Filisko
Published: March 12, 2010 as posted on houselogic.com
Understanding how appraisals work will help you achieve a quick and profitable refinance or sale. The process of getting a home appraisal has been made easier with value estimator tools being available online which can act as a good starting point before you get an agent involved.
1. An appraisal isn’t an exact science
When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home. If you would like to see a better appraisal for your home, in order to sell your home faster, you could click here to learn more.
2. Appraisals have different purposes
If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it.
An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an