A home appraisal may seem to be just one of many steps within the home-buying process but is actually one of the most important.
Essentially, a home appraisal assures both the buyer and the seller that the home’s value is worth the selling price. Because a home’s value can change, a new appraisal is also typically required when you refinance your mortgage.
During an appraisal, the appraiser will evaluate a variety of details, such as the size and condition of the property, the exterior and the interior of the house, including any structural damage.
The appraiser will look what other comparable homes in the area are selling for - similar in lot size, square footage of finished and unfinished space, style and age – and make notes about the neighborhood and surrounding developments or acreage.
The final appraisal amount will include the value of the home, any permanent structures on the property and the land the house is built on.