The Appraisal...

Real Estate Agent with Keller Williams Realty/LA Harbor

One of the key components of your loan approval will be 
the price and condition of the home you are financing. In 
order to determine this value and condition, the lender 
will usually require that an appraisal is done. 
The appraiser will often visit the property and take 
photos of the interior and exterior of the property. They 
will then compare it to all of the homes in that 
subdivision that have sold and closed within the past 6 
months. They are typically able to travel up to 1 mile 
away from the property to get this information. 
Once all of this information has been gathered they will 
then make adjustments and compare your home 
(the subject property) to all of the other homes 
(the comparables) in the area and arrive at a value. 
This form is then sent to the lender. 
If you are applying for an FHA or a VA loan the appraisers 
must be on the approved lists of these agencies. Both 
programs have slightly more stringent requirements for the 
condition of the property than a Conventional loan. If the 
appraiser does note repairs on the appraisal they will 
often have to be completed and re-inspected before the 
lender will allow the loan to close. 


Comments (1)

Nona Swann
Swann & Associates Real Estate - Indialantic, FL
Serving the needs of the Sellers in Brevard County

Chria and Amy,

Very simple explanation to the public of how the appraisers do their job. Good post.

May 09, 2011 02:47 PM