Whether you are purchasing or refinancing, the appraisal process provides a check and balance opportunity for the bank or investor that is preparing to finance the loan. An appraisal is an evaluation of your home’s value and is conducted by a third party independent professional called an appraiser.
The independent appraiser has acute knowledge of the geographic area and the local market. Appraisers will calculate the appraised value of your home by using market demand, analyzing the interior/exterior or your home, and reviewing property comparable sales in the area.
How you benefit from an appraisal
- Provides assurance to borrowers that they are making a financially prudent decision that justifies the amount of the borrowers loan
- Helps provide a more accurate home insurance replacement cost evaluation for your insurance company
- Helps in evaluating the equity you have in your home; may eliminate the need for private mortgage insurance
- Helps determine what home improvements may be financially prudent
The appraised value of your home does not impact the property tax assessment value of your home. The current appraisal is merely a snapshot in time of the market value and appraised value of your property.