Understanding Home Appraisals
A home appraisal is a crucial step in buying, selling, or refinancing a property. It provides an unbiased professional opinion of a home’s value, ensuring that buyers, sellers, and lenders are on the same page.
“As a seasoned real estate expert, I bring a wealth of knowledge to help homeowners navigate the complexities of property appraisals. With a keen eye for market trends and a no-nonsense approach, I make sure my clients have the insights they need to make confident real estate decisions.” –Kevin Wood (Realtor, Author, IMSD, SFR, SRES)
What Is a Home Appraisal?
An appraisal determines a property’s fair market value by considering factors such as:
Property size and condition
Location and neighborhood trends
Comparable recent sales
Upgrades and unique features
The Appraisal Process and Cost
The appraisal process includes the following steps:
Lender Orders the Appraisal: The lender hires an appraiser through an appraisal management company.
Property Inspection: The appraiser assesses the home inside and out.
Comparable Sales Analysis: Similar homes in the area are reviewed to determine value.
Appraisal Report Submission: A detailed report is provided to the lender.
Costs:
Typical home appraisals range from $300 to $700, depending on location, property size, and complexity.
Types of Home Appraisals
There are different types of appraisals, including:
Full Appraisal: A thorough inspection of the home’s interior and exterior.
Drive-By Appraisal: External assessment only.
Desktop Appraisal: Conducted remotely using data and comparable sales.
What Do Appraisers Look For?
Appraisers consider the following:
Square footage, number of bedrooms and bathrooms
Overall condition and recent renovations
Curb appeal and neighborhood
Market conditions and trends
Common Misconceptions About Appraisals
An Appraisal Is Not an Inspection: Appraisers determine value; inspectors find issues.Zillow Zestimates Are Not Appraisals: Online estimates can be inaccurate.
Assessments Are Not the Same as Appraisals: Tax assessments don’t reflect current market value.
What to Do If You Disagree with an Appraisal
If you believe your appraisal is inaccurate:
Review the report for errors.
Provide additional comps to challenge the valuation.
Request a second opinion from another licensed appraiser.
Who Orders and Pays for an Appraisal?
The lender typically orders the appraisal.
The borrower pays for it as part of closing costs.
Conclusion
Home appraisals play a vital role in real estate transactions. Whether buying, selling, or refinancing, understanding how they work can help you navigate the process smoothly.
ABOUT THE AUTHOR
I’m Kevin Wood, a trusted professional in residential real estate who has served southern Arizona and the surrounding areas since 2005. My knowledge and experience covers a wide range of topics including general real estate, mortgages, financing, seniors, moving, and home improvement.
I can be reached at Kevin@wood.staging-1.site or by phone at 520-260-3123. For the past 19+ years, I’ve helped over 600 families move in and out of southern Arizona and constantly rank among the top 10% of realtors nationwide for performance and client satisfaction.
Are you planning a move? I’m passionate about real estate and enjoy sharing my knowledge and skills in marketing.
I serve people with real estate needs in the following areas of southern Arizona: Tucson, Vail, Corona de Tucson, Sahuarita, Green Valley, Oro Valley, Marana, Picture Rocks, Catalina, Saddlebrooke, Benson, Tanque Verde, Three Points, and Red Rock.
