About Real Estate Appraisals
Whenever you buy or sell property, you will most likely need to get a real estate appraisal. Even if you only want to get a second mortgage on your home, you will still need an appraisal. It is important to know a few facts about real estate appraisals. Here are some things you should know.
Many loan companies may require different criteria for a real estate appraisal, depending on the amount or type of loan you are requesting. If you want a FHA (Federal Housing Administration) approved home, then more rigid standards are followed, including the safety of the occupants, not just the safety of the structure.
Most real estate appraisals will look at the following aspects of your home or business: hazards and nuisances, utilities, sewage system, water system, repairs needed, pest control, roof, attic, basement and/or crawl space.
Appraisals are an estimate of the value of your home, office or property. The appraisal includes the land, buildings and contents of the building.
Getting a bad appraisal doesn’t mean that you cannot get a loan on the property. It does mean that you will need to make necessary repairs to ensure that the property meets basic standards before getting a new appraisal and loan approval.
A real estate appraisal is different than a home inspection. Many people confuse the two requirements. An inspection may be necessary for an appraisal, but the appraisal determines how much money you can get in a loan. The inspection makes sure that the property meets certain building, state and federal codes.