what is an appraisal on a house

A home appraisal is a process through which a real estate appraiser determines the fair market value of a home. It is an unbiased professional opinion of a homes value and is required whenever a mortgage is involved in buying, refinancing, or selling property. The appraisal process is a standard step in any real estate deal involving bank financing, and it assures the lender and buyer that the price agreed upon for the home is fair. During the appraisal process, a real estate appraiser will go to the home and take note of the home’s condition, what repairs might be needed, and how it compares with other homes nearby that have recently sold. The appraiser will assess the general condition of the property, count the number of bedrooms, ensure the absence of any safety hazards, and check the functionality of home systems. The appraisers primary focus is to determine if a home is livable. The cost of an appraisal varies by location, property, complexity of the appraisal, and is usually paid for by the buyer. An appraisal is beneficial for everyone involved in the home buying process. For buyers, a home appraisal ensures they’re paying the current fair market value, and for sellers, an appraisal helps them price their home.