A property appraisal is an inspection carried out by an appraiser to determine the value of your property. This is a requirement when you are borrowing a mortgage from a bank or a lender. The lender has to know how much your property is worth before he can accept it as security for the mortgage. If the property’s value is less that the amount of loan you are borrowing, the lender will advise you to take a lower loan amount.
An appraisal is carried out by an appraiser, who is a licensed professional that is trained and experienced in valuating property. In determining the value of the property, the appraiser will objectively inspect the interior and exterior to determine their condition. He will look at the assets in the house and note the liabilities. The appraiser will walk around the neighborhood to determine the condition of comparable houses, consider the area where the property is located, investigate the quality of construction, check out the plot size and gross living space, note the number of bedrooms and bathrooms, check for any recent renovations, consider the decks and fencing, check the state of the house, among other things.
The appraiser will calculate the size of the basement as well as the living space. It is important to note that these two are calculated separately. The living space is calculated in regard to the outside of the house while the basement is calculated in regard to the local market, quality of the finish, government laws, whether is was finished or not, among other things.
The higher the value of your house, the higher the price you can offer it in the market. You should therefore ensure that the appraiser gives you a correct estimate of your house and if he misses renovations that may add value to the house, do not hesitate to point them out.
A qualified and experienced appraiser will give you the true value of your house. You can find them at RealEstateAppraisersList.com, a website that lists appraisers from all over the country. Moreover, there are a lot of resources on the appraisal process that will help you get familiar with the practice.