The Appraisal Process

The Appraisal Process

What is it all about?

When you sell your home, the lender requires a licensed appraiser to estimate the market value of your house. After the mortgage company receives a contract for the sale of your house, they will order the appraisal. An appraisal is a professional opinion of the current value of your house and is good for 6-12 months.

To estimate the market value of your house an appraiser researches the houses which have sold in your neighborhood and your immediate market area (within one mile if possible). Only houses that have sold in the past year and are similar to your house in regards to livable area, age, and amenities (i.e.: swimming pool, fireplace, garage, etc.) can be considered.

An appraiser should be at your house for approximately 30 minutes to an hour. They will measure your home, take photographs, draw the floor plan and note the amenities your home has to offer. You can help your appraiser by preparing a list of recent improvements and remodeling that has been done in the past several years and include amounts spent for each improvement.

If the people buying your house borrow the money from FHA, a few special requirements are placed on your house. If going FHA, you must scrape and paint all chipping or peeling paint on your house or any structures on your property. You should also replace any missing or damaged shingles and replace any missing or broken slats in your wooden fence.

Finally, interior/exterior paint and carpet cleaning are the least expensive ways to improve the overall appeal of your house. A typed report is provided to the lender involved in the transaction.

Good luck on the marketing and sale of your house!

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