Who Does the Appraisal?The appraisal is generally done by a third party individual. The person can have no financial stake in the outcome of the appraisal, which is good for everyone involved. Mortgage companies usually hire and Appraisal Management Company (AMC), and they will then hire a local appraiser from their resources. The buyer pays for the appraisal and that is part of the home loan process.
What Is Figured Into the Appraisal?An appraisal will include a detailed list of many different factors about your home. Most likely it will include details about your property as well as compare the property to three others in the area that are comparable. They will also look for anything that is considered detrimental, whether it be the condition, property access, crumbling foundation, and more. They will also take into account how long it may take to sell the home.
What Will Your Appraiser Be Looking For?
Property Size - Do you have a large house lot? How big is your home? Do you have a lot of rooms, or only a few? Can you expand the home size, or are you limited to only what is there?
Interior - Were hazardous materials used when building the home? What materials were used inside? What types of fixtures are in the home, like lights, faucets, or appliances?
Improvements - Have there been recent upgrades to the home such as a kitchen upgrade or bathroom remodel?
Extras - Are there items in the home that would add value like a fireplace, air conditioning, hard wired sound system, or a security system? You’ll want to make sure those items are pointed out.
Exterior - What is on the exterior of your home? Are they good materials, or hazardous? What is the foundation like? Is the exterior in good condition?