YOUR GUIDE TO HOME APPRAISAL

You've found your dream home, and now it's time to cross all your T's and dot all your I's before it's all your own. And one of the first items on your closing checklist is the home appraisal. So, what exactly is that?

The home appraisal is essentially a value assessment of the home and property. It is conducted by a certified third party to determine whether the home is priced appropriately.

During a home appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the home. They factor in various things, including the home's floor plan functionality, condition, location, school district, fixtures, lot size, and more. An upward adjustment is generally made if the house has a deck, a view, or a large yard. The appraiser will also compare the home to several similar homes sold within the area's last six months.

The final report must include a street map showing the property and the ones compared, interior and exterior photographs, an explanation of how the square footage was calculated, market sales data, public land records, and more.

After it is complete, the lender uses the information found to ensure that the property is worth its investment. This is a safeguard for the lender as the home is collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the house to recover the money borrowed.