The appraised value of your current home, or a home that you wish to purchase, is the dollar amount that states how much your home is worth. A person who appraises homes is called a home appraiser. He or she is hired to provide an educated opinion of the true value of your home. Mortgage lenders rely on home appraisers to provide honest and unbiased opinions on how much pieces of real estate or worth, and they use the information to determine if a mortgage on a property is a good risk.
What Does an Appraiser Evaluate?
A certified or licensed home appraiser should do more than simply crunch comparable sales numbers. And instead of simply driving by the exterior of the home, a home appraiser should physically enter the home and spend some time looking at the interior. Most appraisers can complete their evaluation in less than an hour, but they usually take measurements of the exterior and interior of the home – including the garage.
It is up to the home appraiser to provide his or her educated opinion on the condition of the home. Some of the factors taken into consideration include:
- If the home is older, has the kitchen been renovated?
- Are all of the bathrooms in their original condition, or have upgrades been made?
- Is there anything associated with the interior or exterior of the home that is particularly unappealing?
- How many bedrooms and bathrooms exist in the home?
- Has the current owner of the home kept the property well maintained, or is it in poor condition?
Hoping for a High Appraisal?
If you are attempting to purchase a home at a certain price, and if the house appraises for a dollar amount lower than that price, you may have problems finding a mortgage lender willing to finance the house for the higher price. In such situations, home purchases often fall through – and both the buyer and the seller are put into difficult situations.
If you are hoping for a high appraisal on a house you are selling or refinancing, follow these general guidelines:
- Make sure the home’s interior and exterior paint is in good condition.
- Clear away clutter in bedrooms and in the basement so the appraiser can easily see all of the home’s amenities.
In general, a home appraiser is looking for things that are not affected by the cleanliness of a home’s interior. Instead, the appraiser is evaluating the home’s size, location, and number of rooms. These are factors that cannot be easily altered by a home owner. However, a clean and uncluttered home can make it easier for the appraiser to see the positive aspects of a home.
For more information about home appraisals, how they work, and how they affect your qualification for a mortgage, call The Home Loan Arranger today at 1-877-938-7501.