What is Involved in Appraisals?
Whether you are purchasing a new home, applying for a mortgage loan or selling your home, you will need an appraisal on the home. Getting an appraisal is a standard practice required in many states. What does an appraiser look for when determining your home’s value? What is involved in appraisals?
When you agree to have an appraisal, a professional appraiser will get information about the home and look at the following items regarding the home.
Hazards and Nuisances - The property must be free of anything that may potentially be a hazard or safety nuisance. The appraiser will evaluate the environment in which the house resides. Is the soil free from contamination? Is the home located near an airport or gasoline station? What environmental factors impact this home?
Utilities - The appraiser must evaluate all electrical, plumbing and mechanical systems in the home. He/She will check the faucets, toilets, electrical switches, outlets, breaker boxes and many other necessary components for the utilities of the home.
Sewage System - Aside from the utilities, the appraiser must take an in-depth look at the removal of waste from the home. He/She must ensure that the connections to the city system are properly installed. If the home does not have access to the city sewage system, then additional criteria must be met to ensure that this area is properly maintained.
Water System - In addition to checking the basic water functions in the home, the appraiser must also validate that the water system is properly functioning and safe for the inhabitants of the home. If city water is provided, the connection must be evaluated. If the home shares wells or has an individual water system, this must also be evaluated in depth.
Repair Conditions - The appraiser evaluates the home’s safety, security and soundness. Just because a home needs some remodeling doesn’t mean it will score low in this area. An appraiser is looking for major repair conditions such as missing sections of the home, doorway or windows missing and other potential hazardous repairs needed in the home.
Pest Control - One of the big factors in appraising a home is to make sure that the home is protected from pests such as termites that can potentially destroy a home. Many appraisers will require termite protection measures to ensure the home’s longevity.
Roof, Attic, Basement and Crawl Space - It is important that the appraisers thoroughly evaluates the roof for any leaks or needed repairs. The attic should be inspected to make sure it is properly ventilated and meets safety and building codes. The basements and crawl spaces must also be evaluated for leaks, hazards and everyday conditions.
Once all of these areas have been thoroughly and properly evaluated, the appraiser will determine the value of the home.