06/09/2026
Education: Unless you are paying cash for a home, you will need a appraisal of your property you are buying.
An appraisal is : Real Estate Appraisal: An expert estimates the market value of a home or land based on its condition, location, and recent sales of similar properties. Lenders require this to ensure the loan amount does not exceed the property's actual worth.
Ex. If the SAME house with the same floorplan sold within a years timeframe and it was not a destressed sale, the appraiser will use it as a comparable. Now if one has more land than the other, the appraiser will use it and then figure out the difference in price on what the land is worth and give it value that way..
If in a condo building, they look at the same plan that has sold and give it credit if ex the unit had granite countertops v/s non granite.
If someone has over approved a property in every room, the appraiser will have to show the value and make his opinion... the appraiser determines the value of a property.
You have to have a appraisal if you are doing a loan unless you are putting down alot of money 20% or 50%, then sometimes the bank waives the appraisal. You do not want to over pay for a home and then when you go to resale it you get less than what you paid for it. The bank needs to know what they can sell it for if you do not pay the mortgage.
FHA/VA are different, they also pick out repairs that is needed, ex. Peeling paint, less than a 3 yr life on a roof , stairs needed for safety etc. They may make it to where the roof has to be replaced prior to closing. Those are some key items to look for in a VA/FHA appraisal.
Cash is KING. :-D they say, but not everyone has cash to pay for a home so you get appraisals, they are good for one day. I am not a appraiser but I can guess about what a home will sell for and usually I am pretty close. People these days have barely enough to buy gas and food. (Rates need to lower and people can live happier lives). Questions on appraisals, reach out.
