What is a home appraisal?

A home appraisal is an estimate of a property’s value by a licensed appraiser. Whether you’re buying, selling or refinancing a home, an appraisal is typically an important part of the process because the results can affect the borrower’s ability to receive a loan.

What is a home appraisal & why is it important?

If it is a purchase-and-sale transaction, the appraisal is used to determine whether the home's contract price is appropriate given the home's condition, location, and features. In a refinance transaction, the appraisal assures the lender that it isn't loaning the borrower more money than the home is worth.

Should I get a home appraisal?

A home appraisal may not be top of mind when you're looking to buy, sell or refinance a home. But maybe it should be: An appraisal determines for the seller, the buyer and the lender how much a home is worth. The purpose is to protect the buyer and the mortgage lender from paying too much.

What does a home appraiser do?

When appraising the home, the appraiser will complete a visual inspection of the home’s interior and exterior by walking the property and grounds. They’ll also drive around the neighborhood, research recently sold comparable homes nearby and analyze public record data.