The first thing appraisers usually do is measure the home to determine square footage. The bigger your house, the more it could be worth. They also compare the square footage of the house with those of other houses in the neighborhood. If there are other homes in the area that are similar in size to yours, the appraiser can analyze the values of those homes to get an idea of what yours is worth.
The difference between the appraised value of the home and the amount you want to borrow can make or break your deal with the lender. In particular, the appraiser will closely examine homes with similar characteristics, ideally with the same number of bedrooms and bathrooms. The appraiser compares these and other factors with similar homes that have recently been sold in the neighborhood. Being close to coffee shops, stores, or a nearby state park could result in a higher appraisal price, while a noisy and busy street could cause the home to be priced for less.
According to Bethany White, a top Virginia Beach agent with more than 13 years of experience, FHA assessment requirements tend to be more stringent than conventional loan evaluations. Appraisers will also inspect your siding, gutter, roof, HVAC, plumbing and other household systems to ensure they are in good working order. To become a licensed home appraiser, individuals must complete 150 hours of educational courses, complete an apprenticeship with an experienced appraiser, and pass an exam supervised by the Appraisal Ratings Board. Specifically, with respect to the exterior of a property, an appraiser looks at the site, the quality of the construction, the integrity of the roof and foundation, any problems with the gutter or siding, the parking facilities, and the observable external condition of the home.
In fact, an appraiser working on a full refinance appraisal uses the same URAR form that is used to purchase loans. If you are a seller who receives a home appraisal before listing your home, you will likely do so to help set an accurate list price. But there are still things you can do to prepare your home for the appraisal and help ensure that the process goes smoothly. If the home has undergone a major refurbishment, the appraiser verifies code compliance and structural integrity of the walls and load-bearing beams.
A home appraiser is a real estate professional who evaluates the fair market value of a home, based on its condition, location and more. There are a number of myths associated with the appraised value of a home that confuse many sellers and buyers.