The Truth About Appraisals
Appraisals act as a value assessment of your home or property. The appraisal process involves hiring a certified appraiser to visit the property and take into account various data, such as the renovation history or inspection status of the structure. Oftentimes, homeowners are baffled by the results of an appraisal–often feeling their home is worth more than the value assigned. Mortgage Maestro Group can help you get the facts about the journey of home and property appraisal, directly from our team of mortgage experts.
How Extensive is the Appraisal Process?
The appraisal process is fairly straightforward. After receiving an offer, homeowners contract an inspection and then contact the appraiser. Most appraisals require between two days and a week before a final value is established.
How Can I Trust the Appraisal Value?
Appraisers are not affiliated with any lenders, buyers, sellers, or real estate agents. They act as an unbiased third party and are certified to value homes in accordance with the standards set forth by the Uniform Standards of Professional Appraisal Practice, and Fannie Mae.
How is the Appraisal Value Determined?
Assigning value to homes and properties isn’t always as simple as considering the scope of work put into the home, or calculating the expenditures made by the homeowner to install the newest fixtures. These factors do have their place in the value assessment, however, the appraiser is actually bound to report these expenditures in the context of the local market (all homes and properties bought and sold locally over the past 6 months). Competing structures and land size values set the context for the value bracket.
When it comes to updates and features of the property, homeowners are often shocked to learn that what they thought would retain or add value to their home was largely unaccounted for in the appraisal. A $30,000 pool installation may only reap half its value toward the appraisal, as all updates are considered in the context of the competing market. Updates made to newer homes may be expressed as a larger percentage of the appraisal value. This is due to the fact that applying these upgrades early on counts directly toward the value of building the home itself (as opposed to extensively renovating an older home).
At Mortgage Maestro Group, our team of professional lenders abide by the Home Valuation Code of Conduct. Our lenders are prohibited from involvement with any appraisers, and in no way attempt to influence appraisal decisions. This allows for smooth closing for our clients who are in the process of purchasing a home or property. To learn more about best practices in the appraisal process, or other stages of homeownership, visit our website or check out our frequently updated blog.