The total revenue for the real estate appraisal industry in the United States is an astounding $9.8 billion in 2023. With home appraisal being such an extensive enterprise, there are some important things to know about the process. Here you will find what you need to know.
If you’re buying a home using a mortgage, refinancing an existing mortgage, or selling your home, obtaining an accurate home appraisal is very important. Here is a comprehensive guide to all things home appraisal, but a summary can be found below.
What Is Home Appraisal?
A home appraisal is basically an unbiased professional opinion of the value of a home. It is a key component of all real estate transactions.
Why Is It Important?
When it comes to selling a house or buying a house, an appraisal is needed to determine whether the price is appropriate given the home’s condition, location, and features.
When it comes to refinancing, an appraisal is used to confirm to the lender that they are not supplying the borrower more money than the home is worth.
The Appraisal Process
Expect to pay several hundred dollars for an appraisal from a qualified appraiser. A qualified appraiser should be licensed or certified, and highly familiar with the area in which the appraisal is needed.
To assess the home itself, an appraiser will pay attention to several factors, including age, square footage, the numbers of bedrooms and bathrooms, and the amenities. To complete the evaluation, the appraiser will consider factors outside the home, like the location, the outside topography, the street the home is on, as well as things like crime and even weather. They will also consider comparable sales.
The appraiser matters, so choose wisely. Luckily, there are many excellent appraisers out there, and in a 21st century world, you can benefit from expertise even if it’s not right down the road.
Consider Alex Plotkin, for example, a renowned appraiser in the real estate booming state of Florida. Alex has worked with thousands of clients in his career, and his real estate acumen is off the charts. While Alex is located in the Tampa-St. Petersburg area, his expertise has been used all across the Sunshine State.
The Bottom Line
Real estate appraisal being a billion dollar industry makes a lot of sense. It’s monumentally important.
When you are buying a home, the appraisal will be one of the first steps in the closing process. If the appraisal comes back at or above the asking price, the transaction can proceed as planned. If it comes back lower, however, kinks will need to be resolved before a transaction can proceed.
While getting a home appraisal may sound burdensome, it needs to not be overlooked. The process is usually smooth, just another box to check off on the checklist. A high-quality appraiser will deliver, so start exploring your options today.