Liz Kroft | February 8, 2023
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 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 and is used 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. He or she factors in a variety of 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 home has a deck, a view, or a large yard. The appraiser will also compare the home to several similar homes that were sold within the last six months in the area.
The final report must include a street map showing the property and the ones’ compared, photographs of the interior and exterior, an explanation on 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 the amount they are investing. This is a safe-guard for the lender as the home acts as collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed.
Stay up to date on the latest real estate trends.
Buying
Buying vs Renting Pros and Cons and the decisions you need to make
Market News
Though the housing market in the California Bay Area is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home
Recreation
10 places to get outside and explore the Santa Cruz Mountains and the Redwoods
Home Maintenance
Here are 8 things you can do to keep your home in good order.
Buying
1031 exchange....What are they?
Market News
Homeownership Tips
There’s no denying the long-term financial benefits of owning a home, but today’s housing market may have you wondering if now’s still the time to buy. While the finan… Read more
Selling
Trust property sales, how are they different.
Buying
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 checklis… Read more
You’ve got questions and we can’t wait to answer them.