What Appraisers Look For in a House
In a constantly evolving housing market, it’s essential to know what appraisers look for in a house. An appraisal can impact your home sale significantly, especially if it doesn’t go as planned.
Appraisals are a professional third-party assessment of a home’s value. Whenever a mortgage is used to buy a home, an appraiser will need to assess the home’s value to ensure the bank is not lending the buyer more than the home is worth. For example, if a buyer offers $300,000 for a house but it appraises for $250,000, the bank won’t lend the total amount needed to purchase. For similar reasons, appraisals are also necessary when refinancing a home.
Appraisers employ a systematic valuation process to determine an opinion of a home’s market value. Most of them report their findings on a standard Fannie Mae and Freddie Mac form called the Uniform Residential Appraisal Report (URAR). But what goes on that report?
