Volkhaus Appraisal 
Appraisals are an important part of the homebuying process. A real estate appraisal establishes a property's market value – the likely sales price it would bring if offered in an open and competitive real estate market. Lenders require appraisals when buyers use their new homes as security for their mortgages. An appraisal provides the lender with assurance that the property will sell for at least the amount of money it is lending.

Don't confuse a comparative market analysis, or CMA, with an appraisal. A CMA is a sales report based on data entered into the multiple listing service, or MLS. Real estate agents use CMAs to help their clients determine realistic asking and offering prices. Appraisals are detailed reports compiled by licensed appraisers. An appraisal is the only valuation report a lender considers when deciding whether to lend the money.

An appraisal is also not the same thing as a home inspection. Home inspectors test appliances and outlets, check the plumbing and confirm that a home's heating and cooling system is working. Such information is helpful for the buyer to know before moving in. An appraiser, however, is only concerned with valuating a home.

About Appraisers and Appraisals

• - Appraisers are licensed by states after completing licensing coursework and internship hours.

• - The appraiser must be an objective third party, someone who has no financial or other connection to any person involved in the transaction.

• - The property being appraised is called the subject property.

• - In some cases, the buyer pays for the appraisal at the time of loan application. - - - Other times, the appraisal fee is added to the settlement statement and paid at the closing table.

What You'll See on a Residential Appraisal Report

Appraisals are very detailed reports based on an appraiser's on-site evaluation of a property as well as an evaluation of sales data.

Here are a few things they include:

• - Details about the subject property, along with side-by-side comparisons of similar properties.

• - An evaluation of the overall real estate market in the area.

• - Statements about issues the appraiser feels are harmful to the property's value, such as poor access to the property.

• - Notations about seriously flawed characteristics, such as a crumbling foundation.

• - An estimate of the average sales time for the property.

• - The type of area in which the home is located, for example, a development or stand alone acreage.

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Need more info? Give Volkhaus Appraisals a call at (720) 232-1075.