What is a Home Appraisal?

A home appraisal is an unbiased estimate of the true (or fair market) value of a property. Appraisals are often ordered when a property is being sold, but can also be helpful for estate planning, tax purposes, or simply to get an idea of what your home is worth.

If you’re thinking of buying a home in Rhode Island, it’s important to understand the role that appraisals play in the real estate process. Here’s what you need to know about home appraisals in the Ocean State:

What Is a Home Appraisal?
A home appraisal is an estimate of a property’s value based on recent sales of similar properties, current market trends, and other factors. Appraisers look at a variety of factors when estimating a property’s value, including its location, condition, size, and features.

Home appraisals are typically ordered by lenders when a borrower is applying for a mortgage. The lender wants to ensure that the home is worth at least as much as the loan amount – an appraisal protects their investment.

Homebuyers can also order appraisals, although this is less common. A buyer might order an appraisal if they’re interested in purchasing a home but want to be sure of its value before making an offer.

Appraisals can also be helpful for tax purposes or estate planning. If you’re considering selling your home, an appraisal can give you an idea of how much it’s worth on the market.

How Do Appraisals Work?
Home appraisals are typically ordered by lenders when a borrower is applying for a mortgage. The lender will order an appraisal from a licensed appraiser, who will then visit the property to assess its value.

The appraiser will look at a variety of factors when estimating the property’s value, including its location, condition, size, and features. They will also compare the property to similar homes that have sold recently in the area to arrive at a fair market value estimate.

Once the appraiser has completed their report, they will submit it to the lender. The lender will then use the appraisal to determine whether or not to approve the loan.

If you’re a homebuyer, you might order an appraisal if you’re interested in purchasing a home but want to be sure of its value before making an offer. In this case, you would pay for the appraisal yourself.

Appraisals can also be helpful for tax purposes or estate planning. If you’re considering selling your home, an appraisal can give you an idea of how much it’s worth on the market.

The Bottom Line
A home appraisal is an unbiased estimate of a property’s true value. Appraisals are often ordered by lenders when a borrower is applying for a mortgage, but can also be helpful for tax purposes, estate planning, or simply to get an idea of what your home is worth.

If you’re thinking of buying a home in Rhode Island, contact any of the team at RISE Real Estate today… James Duffer | Yvonne Sousa | Herson Martinez | Kyle Graves | Ryan Foss and we can help with any real estate questions you might have, including Rhode Island, as well as Connecticut and Massachusetts.