Real Estate
What an appraiser does and why you need one
In order to obtain a mortgage, you’ll likely need to hire a professional appraiser to assess the home’s value.
Lenders typically require a professional appraisal to confirm the current market value of your would-be home. This is because they want to protect their investment and be certain that they could get their money back by selling the property if you default on your loan.
Appraisers look at many factors to determine your home’s market value. Above all, they look at comparable sales, often called “comps” for short. These figures show how much similar properties sold for in your area in the last 90 days. They’ll compare your home with other homes recently put on the market in terms of square footage, condition, appearance and amenities.
In some cases, it may be worth hiring a professional appraiser when you’re selling your home and trying to determine a fair asking price. Although most real estate agents can also provide you with a comparative market analysis of your home, an appraiser can step in to give an unbiased assessment if you receive conflicting estimates from different agents.
