Appraising the Property

An appraisal report determines the market value of a home on a specific date. In order to obtain this value, a certified and licensed appraiser will visit the home to take many measurements, photos and view firsthand the various amenities and features of the property. The actual home inspection is a relatively short process, generally 15-30 minutes, as the majority of an appraiser’s efforts are consumed in the research and analysis stages.

The appraiser is an essence another referee. They will impartially assess the value of the property to make sure the home is worth the price being paid.

Once an appraiser has completed the appraisal inspection of the home, they will explore recent sales of comparable homes as well as current property listings in the area. A property is usually considered a comparable sale if it is similar in size, condition and appearance, has been sold within the last 6 months and is within 1 mile of the subject property. These properties will be used as a basis for determining the market value of the subject as of the date of the appraisal inspection.

The appraiser will then make comparisons of the comparable sales and listings to determine similarities and differences between these properties and the subject. The appraiser will make additions or subtractions to the sales price of the comparison properties based upon differences such as bedroom count, bathroom count, square footage, amenities, upgrades, etc. between them and the subject. The adjustments will be totaled in order to arrive at a final determination of the value of the subject. This method of determining value is called the Market Approach.

Why Get an Appraisal?

An appraisal is required on every purchase loan transaction. The appraisal report will ensure that the buyer is not paying too much for a property based on recent sales in the area. The buyer usually pays for the cost of the appraisal report.

Choosing an Appraiser

CraterTeam.com has an extensive list of Preferred Appraisers. These appraisers have a minimum of 2 years experience in appraising properties in your specific area and are all fully licensed and approved to conduct the specific appraisal report that will be required. If you have an appraiser that you would prefer to use, that is perfectly acceptable as long as they are fully licensed and approved through the appropriate regulatory agencies.

Your Processor will order the appraisal report for you once we receive a copy of the signed and accepted purchase contract.

An experienced appraiser will deliver an objective appraisal report ensuring you are not over-paying for a property. The appraiser’s professional opinion is worth the small cost of the appraisal report.