What's a Home Appraisal?

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A home appraisal is an opinion of value, an educated guess, a hypothesis as to what the typical buyer will pay for any given property within a reasonable amount of time on the market. It's serious business these days. When an appraiser surveys a property, they aren't looking for curb appeal or great staging, they're looking at the whole host of social, economic, governmental and environmental forces that shape real estate sales trends.

Though a home's market value may be increased by replacing the appliances, painting, planting flowers and rearranging the furniture, none of these things will affect the appraisal. If you want to increase the appraised value of your home you will have to look at deeper issues; updated plumbing, electrical and HVAC systems, new roofs, windows and insulation will all affect the appraised value of a home.

The cost of an appraisal typically runs in the $200 to $400 range and they are usually good for 6 months.

What's in an Appraisal?:

- a legal and physical description of the property
- square footage
- measurements
- a list of comparable properties in the neighborhood
- a description of the neighborhood
- a report on current real estate activity and market trends in the area
- an analysis of the "highest and best use" of the property

What a Home Appraisal Can Do for You:

An appraisal's main function is to help determine the true market value of a property, an essential piece of information when lenders define mortgage terms. In many cases, buyers or homeowners seeking refinancing will be required to foot the bill for the appraisal. Once complete, however, the report belongs to the bank. All other parties must formally request a copy of the report if they want to review it. It's highly recommended that all concerned parties do this, you can guarantee that the banks will make sure that their interests are covered.

But while banks insist on an appraisal before they'll lend out any money on a home, that's not the only reason to get one. Ideally, an appraisal will be able to protect the interests of all parties involved in a real estate transaction equally well. For example, before you put your home on the market, you will have to arrive at a price that the market will bear, an appraisal should be your first step. An appraisal is also useful to buyers deciding on the viability of an investment.

Though real estate agents can usually provide you with a comparative market analysis that will give you a good idea of your home's worth, if you're buying a home, these assessments won't replace an appraisal. Unless someone's forking over a suitcase full of cash for the property, an appraisal will be required by the bank before they will lend out any money to any buyer.

Appraisals can also be worthwhile to homeowners that are making renovations. In cases where you're making changes to your home with the intention of increasing your resale value, an appraiser can help you determine whether or not you will get a return on your investment. Occasionally, appraisals are also called for in cases where the value of a property is in dispute ie: divorce, estate settlement, foreclosure and zoning issues.

All states require appraisers to be state licensed or certified. If you are looking for an appraiser to work with, always make sure that the one you hire is certified by the state you live in. This should be a minimum basic requirement. Further qualifications can include certification with a professional organization. The Appraisal Institute and the American Society of Appraisers both require members to go above and beyond state requirements.

Information about the Author: StacyNeirHomes.com is your online Denver Colorado real estate source. Stacy and Alex Neir are top-producing agents, whose dedication to first class customer service and love for Denver make them an ideal choice for your real estate needs. To search Golden Triangle Denver real estate, visit Stacy and Alex online today! Home Improvement Articles: http://www.article-buzz.com

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