HUD Articles

An appraisal is one persons opinion of value of an object.  The object could be a piece of jewelry, an oil painting, or the home you are planning on purchasing.  In the case of a home, the bank or mortgage company sends out an objective third person to confirm that the value of the home is at least equal to the amount you are planning on spending.  It helps you, the buyer, to see that they are not paying more than what the home is reasonably worth, it helps your mortgage company know that they can recoup their loss and sell the home if you fail to pay your mortgage,  and it can even help the seller to understand where their price point is..either too high, too low, or just right!

When the appraiser sets the appointment to see your home, obviously you want to put your best foot forward.  While they dont comment on cleanliness, it can become a subtle message to the appraiser that the home is carelssly maintained.  You dont have to clean out closets, but you should be sure all areas of the home are accessible for viewing.

In most cases the appraisal of a single family home takes about 40 min of viewing and measuring.  They may ask a few questions about the home, and then they will go back and start their real work.  Your home will be compared to homes of the same size, in the same area, and same condition.  they will look at completed closed sales within the last few months.  Adjustments will be made for number of baths, garage size and condition, and many other factors.

Then a value will be determined and sent to the mortgage company for review.

Most homes appraise at the value they are under contract for, and the buyer can then know that they can feel more comfortable with their purchase