Appraisal
Author: Terri Ewing | Date: August 28, 2008 | Filed In: Glossary
Appraisal Defined
An appraisal is an estimate of the current market value of a home. The appraisal has to be included in the loan package submitted to the underwriter whether the loan applied for is a purchase or a refinance.
Residential appraisals use the “sales comparison” method to determine market value. The appraiser must use at least 3 comparables sale properties with this method.
A comparable property is a home that is very similar to the subject home in square feet, style, bedroom/bathrooms, age, and neighborhood.
The comparables also have to be homes that have sold recently…ideally in the last 6 months.
The appraiser uses the sale data from each comparable sale property to determine a current market value called the appraised value for your home.
Author: Terri Ewing
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