{"id":5593,"date":"2022-04-28T10:44:36","date_gmt":"2022-04-28T17:44:36","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=5593"},"modified":"2024-02-12T09:07:02","modified_gmt":"2024-02-12T17:07:02","slug":"what-do-home-appraisers-do","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/what-do-home-appraisers-do\/","title":{"rendered":"What Does an Appraiser Do to Determine Home Value?"},"content":{"rendered":"

Just as each home has a determined listing price based on the\u00a0current market<\/a>, surrounding comparable sales (comps<\/a>), and the expert recommendation of your Realtor\u00ae<\/a>, a home appraisal is the cherry on top in stating what your home is actually<\/i> worth.<\/p>\n

Home appraisers determine the valuation of a home based on its condition, age, location, and many other important factors which we\u2019ll dive into throughout this post.<\/p>\n

To better explain the residential home appraisal process<\/a> and how it works, we\u2019ve spoken with experts, including a home appraiser who\u2019s been in the appraisal business since 2005, and a real estate agent who\u2019s walked through hundreds of appraisals with seller clients.<\/p>\n

These two experts offer their combined knowledge on this topic so we can bring you the facts, and better explain how a home appraisal works, what a home appraiser does, and how exactly an appraiser determines a home\u2019s value.
\n
\n\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Get a Free Home Value Estimate<\/h3>\n

Enter a few details about your home, and we\u2019ll provide you with a preliminary estimate of value in less than two minutes. This won\u2019t replace a comparative market analysis (CMA) or home appraisal, but it can be a helpful starting point.<\/p>\n \n

\n Request Estimate<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n<\/strong><\/p>\n
<\/div>\n

What does a home appraiser do?<\/h2>\n

\u201cThe appraisal is the collateral component of the overall underwriting decision, which is often an important factor in the approval decision and may dictate loan limits,\u201d explains appraiser Chris Bourland of JB Real Estate Valuation & Advisory<\/a>.<\/p>\n

An appraiser performs research on the surrounding area and conducts a home visit to arrive at a well-accessed number of how much a home is worth. This number then gives the homeowner (or future homeowner to be) a better idea of a home\u2019s market value, and it helps lenders access an appropriate financing amount.<\/p>\n

\u201cFor purchase transactions involving financing, the appraisal serves the lender by providing an opinion of value so that loan decisions can be made,\u201d says Bourland.<\/p>\n

Stay tuned for more on what exactly<\/i> a home appraiser is looking at during their research, and what to expect from an appraisal visit.<\/p>\n

<\/div>\n

Who hires and pays for the home appraiser?<\/h2>\n

Who pays for appraisal fees depends on who ordered the appraisal and what the appraisal is being used for. Here\u2019s how it works:<\/p>\n\n\n\n\n\n\n\n
Use of the appraisal<\/b><\/td>\nWho usually pays for it<\/b><\/td>\n<\/tr>\n
Refinance<\/td>\nHomeowner \/ borrower<\/td>\n<\/tr>\n
Home purchase<\/td>\nBuyer \/ borrower<\/td>\n<\/tr>\n
Pre-listing determination of value<\/td>\nOwner who is planning to sell<\/td>\n<\/tr>\n
Settling an estate<\/td>\nFamily or estate assets<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In the case of a refinance or mortgage loan, the lender will hire an appraisal through appraisal management companies<\/a>.<\/p>\n

These companies provide third-party, outsourced appraisal contractors who are not affiliated with the lender or borrower. Although the lender arranges for the appraisal through an Appraisal Management Company<\/a> (AMC), it is the responsibility of the borrower to pay for the appraisal fees<\/a>.<\/p>\n

<\/div>\n

What do appraisers do when they visit your home?<\/h2>\n

A number of factors<\/a> can impact a home’s value, and a home appraiser looks at each one closely during their appraisal visit.<\/p>\n

Appraisers assess the value of a home by focusing on the following aspects:<\/p>\n

A home\u2019s condition<\/h3>\n