A residential real estate appraisal is a process through which a qualified appraiser estimates the fair market value of a single-family home. The appraisal is typically ordered by a lender as part of the mortgage approval process, but it can also be used by sellers, buyers, and investors to get an independent assessment of a property's value.
The appraisal process typically involves three steps:
Inspection: The appraiser will inspect the property and gather information about its condition, size, location, and amenities.
Research: The appraiser will research recent sales of similar properties in the area to get an idea of what comparable homes have sold for.
Valuation: The appraiser will use the information gathered from the inspection and research to estimate the fair market value of the property.
The appraisal report will include the appraiser's opinion of value, as well as a detailed explanation of how the value was determined. The report will also include a list of comparable properties that were used in the valuation process.
The appraisal process can take anywhere from a few days to a few weeks, depending on the complexity of the property and the availability of comparable sales data. The cost of an appraisal typically ranges from $800 to $1500.
A residential real estate appraisal is an important part of the home buying and selling process. It can help to ensure that both buyers and sellers are getting a fair deal, and it can help to avoid costly disputes down the road.
