What is an Accurate Appraisal?

Are you looking to get an appraisal carried out on your home? Concerned that it may not fully indicate the true value of your home or of the property you're seeking to purchase? The following information will help you ensure you get the most accurate appraisal possible.

A home appraisal is a full inspection of your home by a professional appraiser. This is for the purpose of determining the current market value of a property. Several factors are taken into account when an appraisal is being carried out: the value of similar homes in the same area, the condition and age of the home, the desirability of the neighborhood and the potential the home offers to prospective buyers.

This information should be taken into consideration when an appraiser prepares his written report. If you are using a certified and reputable appraisal firm, your appraiser should provide you with a full breakdown of how the value of your home was determined. This figure should be presented to you using a standard form known as the Uniform Residential Appraisal Report.

If you are concerned that the value of your appraisal is too low, you should seek a second opinion. This may cost you another fee – and let's face it, appraisals do not come cheap – but it could have a substantial effect on what you pay for a property or how much you feel you can charge for it if you are selling. If you are required to provide an appraisal to your mortgage lender, a low appraisal may influence the amount of money they are willing to loan you for your purchase. So as you can see, obtaining an appraisal that accurately reflects what a home is worth is very important.

Some of the reasons why your appraisal may be less than accurate include errors by your appraiser or fluctuating market conditions that are responsible for pushing house prices up or down. Getting a second opinion is recommended if you are unhappy with your appraisal and will give you peace of mind in the long run.