This ensures that the buyer pays what the home is worth, and that the lender doesn’t lend more than the home is worth.
Here are some things a home appraiser will look for:
- Location of the home.
- Where the neighborhood is located and whether it’s growing or not.
- Square footage of the entire property.
- Layout of the home.
- Potential hazards, such as floods.
- Age and condition of the house overall.
- Amenities, such as a fireplace, deck or swimming pool.
- Condition of the appliances.
- Sales trends and price ranges for comparable homes in the neighborhood.
An appraisal is also beneficial to the lender because it helps the lender determine factors like your interest rate, minimum required down payment, and whether the buyer will be approved for the loan.
The appraiser will provide a report, which must include:
- A street map showing the location of the appraised property and comparable sales.
- An exterior building sketch.
- How the square footage was calculated.
- Pictures of the home (front and back), including the street it’s on.
- Pictures of each comparable property used.
- Other relevant information such as market sales data, public land records, and public tax records that have been used to determine the property’s fair market value.
Appraisal waivers allow buyers who meet certain qualifications to skip the appraisal process when purchasing a home. Instead of an in-person appraisal, the lender will usually rely on automated underwriting systems to determine the value of the home. A lender could waive the appraisal if they have significant evidence that the home value matches the loan they plan to give. An appraisal waiver is usually reserved for homes with distinctive features, those that have undergone extensive renovations or those in fluctuating markets. QCBN
By Greg Riordan
Greg Riordan is a Loan Officer with Legacy Mutual Mortgage. For additional information or to get in touch with Greg, visit legacymutual.com/officers/greg-riordan or call 928-427-5156. You may find his office at 325 W Gurley St #102, Prescott, AZ 86301. Greg cares about the people that choose to trust him with the biggest asset in their lives – their home. He will give straight, honest answers with exceptional advice whether you are refinancing your home to pay off debt, lowering your rate, reducing the length of your loan or to purchase your first or next dream home.
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