A home appraisal is a critical component of the home buying and selling process. It is an unbiased professional opinion of a home’s value, conducted by a certified and licensed appraiser. The purpose of a home appraisal is to determine whether the home’s contract price is appropriate given the home’s condition, location, and features. Lenders require appraisals when buyers use their new home as security for their mortgage to ensure that the homebuyer, and the lender, are not paying more than the house is actually worth.

The appraisal process typically involves the appraiser conducting a walk-through of the property, noting its condition and features, and comparing it to similar properties in the area that have recently sold. They will consider factors such as the home’s floor plan functionality, condition, location, school district, fixtures, lot size, and more. The appraiser then provides a detailed report explaining their findings and the reasons for the home’s value. This appraisal can significantly impact the selling price of the home, the speed of the sale, and the confidence of all parties involved in the transaction.