What is a Home Appraisal?
Answer:
Before closing on a home loan, the mortgage lender
will require a home appraisal from a licensed real estate appraiser. The purpose of a home appraisal is to inform the lender of the property's market value, which assures them that the asking price of the home is not overpriced. If the home appraisal is less than the purchase price, the lender may choose not to finance the property, or the seller may be willing to negotiate on the sale price.

The home appraisal is a property report that includes details on the home, the neighborhood, and comparable sales for the area Appraisers are third-party individuals and do not represent the bank or seller. Although the lender chooses the home appraiser, home sellers may also choose to have a home appraisal prior to listing their property. This helps the seller determine a fair market price. However, mortgage lenders do not usually accept the seller's appraisal.

The homebuyer pays for the home appraisal, and the price can range from $300 - $500, depending on property size. Throughout the appraisal process, which can take from 15 minutes to a couple of hours, homebuyers are usually present. Once the home appraisal is complete, the mortgage lender will supply the loan applicant with a copy of the appraisal report.
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