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Frequently Asked Questions
What is an appraisal?
What is market value?
What is "arms length" transaction"?
When is an appraisal needed?
What is PMI?
How does an appraiser estimate "Market Value" of my home?
What does an appraiser do during inspection of my house?
What is an appraisal?
An appraisal is basically an unbiased estimate or opinion of market value.
The appraiser's opinion must be impartial & honest. Top
What is market value?
Market value is the most probable price a property will sell for in an open
market, on a specified time, in an arms lenfth transaction. Top
What is "arms length" transaction"?
In an arms length transaction both parties must be well informed, willing,
each acting on his/her own interest, and the property should've been exposed
to the open market for a reasonable amount of time. Top
When is an appraisal needed?
For variety reasons. For example, Removal of PMI, first time or refinancing mortgage
loans, estimating market rent, many real estate transactions, divorce cases,
are some examples of when an appraisal might be needed. An honest opinion
of market value by a qualified, licensed or certified appraiser protects
and informs all willing parties involved in a transaction. Top
What is PMI?
A "Private Mortgage Insurance" is usually needed by the lender if your mortgage loan
is over 80% of your home value, however it usually can be removed by the lender
once your mortgage becomes less than 80% of your home's value, i.e. if your
home value increases. Top
How does an appraiser estimate "Market Value" of my home ?
The very short answer to this question is that the appraiser inspects your property, then
visually inspects some other properties in your neighborhood from outside which are similar
to your home and were sold within last few months and then draws a conclusion considering
many factors and using multiple approaches. There are specific guidelines that an appraiser
must follow in every step of an appraisal process. Top
What does an appraiser do during inspection of my house?
The appraiser will measure your property from outside, visually inspect you property, both
from outside and inside, draw a layout of your house, take note of features and/or defects (if any), and take a few photos. Top
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