An appraisal is an unbiased professional opinion of the value of property, such as real estate, a business, collectible or antique items. The report is based on a inspection, recent similar sales, current market trends, and more to determine appraisal value. They are usually required when buying, selling or refinancing a home.
Most appraisals cost between $200 – $600. The amount of time, effort and work that goes into the appraisal including the size, style, location and condition of property will affect or determine the price.
Appraisals are normally good for a total of 120 days (4 months). If you do not close on your home within that time, you will need to have another appraisal because the conditions may have changed.
You may also be required to get a home inspection. The purpose of this is for evaluating a home’s condition. The inspector walks through and checks the structure from top to bottom, including the walls, ceilings, floors, windows and doors, as well as the mechanical and electrical systems, appliances and plumbing. After looking at everything the inspector provides an objective report, including repair recommendations.
An appraiser considers the home’s condition as part of the analysis of how much the property is worth, as well as other factors, such as the local housing market. The appraiser doesn’t make recommendations for repairs.
The main difference between an appraisal and an inspection is that an appraisal deals with the value of real estate, while an inspection deals with the condition of the home.
