A home appraisal is a process to determine the value of a property. It is conducted by a licensed appraiser who is unbiased and independent. The appraiser inspects the property, considering factors such as its condition, amenities, and location. They also look at the current real estate market and compare the property to similar ones nearby.
There are two main reasons for getting a home appraisal. First, when buying or selling a home, appraisals are often required by banks and mortgage lenders to verify the property’s value. This helps determine the mortgage amount and property tax. If the purchase price is higher than the appraised value, lenders will usually only lend based on the appraised value. The cost of the appraisal may be covered by the buyer in these cases.
You can also get an appraisal to simply know the value of your property. Appraisals can be done at any time, and they provide a better understanding of how much your property has appreciated since its purchase. However, it’s important to do your due diligence when choosing an appraiser.