What is a Real Estate Appraisal?
A home appraisal is a written report and analysis on the estimated value of the property required by lenders to ensure the home’s value supports the loan amount.
For a mortgage loan to be approved, a licensed real estate appraiser will inspect the home to establish the true value of the property. An appraiser will gather data from observations and verify the number of bedrooms, bathrooms and so on to confirm they’re in decent condition a buyer would expect.
After the inspection the appraiser uses two or three approaches to determining the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach.
Next the appraiser will research the neighborhood and recent sales of comparable homes in the area to determine a fair market value for the property. The appraiser will then submit a final appraisal report with all the data and research to issue a final “opinion of value.”
Home Appraisal Cost
The mortgage appraisal is paid for in your deposit and the cost will appear in the closing documents. See a list of appraisal cost.
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Express Appraisals Inc. provides Appraisals for Missouri (MO) and Kansas (KS).