They cost a few hundred dollars and typically the buyer pays the fee at closing, although you can opt to pay it up-front. A good faith estimate—also known as a GFE—given to you by the lender will supply a fee for the appraisal.
Showing posts with label appraisals. Show all posts
Showing posts with label appraisals. Show all posts
Saturday, April 29, 2017
Thursday, August 6, 2015
Sunday, May 10, 2015
Monday, January 12, 2015
difference between an appraisal and a property inspection?
The Function of an Appraisal
Homebuyers may become confused between the purpose of an appraisal and the purpose of an inspection. An appraiser evaluates a property to determine the value of the property based on its current condition, and the current market conditions. An “as is” value can be based on a property that does not meet minimum health and safety standards. In fact, some values end up being land value less demolition costs. Some mortgage clients require appraisers to take into account readily observable conditions and determine if the property meets minimum health and safety standards.
Compare that to the function of a home inspector who scrutinizes the physical condition of the property and identifies items that should be repaired or replaced. This includes pointing out problems that are not easily discernible to a novice homebuyer, informing them regarding working order, the need for repair or replacement, and telling the homebuyer about possible remaining economic life.
Neither the appraiser nor the inspector is responsible for guaranteeing the condition of the property, its systems, appliances, etc. They do not have to certify that the property is free of defects..
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