This is a guide to home appraisals and should help you as you navigage through the process of buying a home in today’s real estate market. In the event that you are buying a house, the form of appraisal you want is a “market value appraisal,” which will provide you with the fairest result. Just another reason why a guide to home appraisals is so important.
A home appraisal is an evaluation of the cash value of a house and property. It can be based on the following factors:
The appraisal value must be based upon a legal concept known as “HIGHEST AND BEST USE” which states simply that the appraised value of an item must be based upon how the property might best be used, not how it is being used at the time of sale
One part of the appraisal report will be a list of “Comps” chosen by the appraiser. These are comparable houses, in the same neighborhood which have sold in the last six months.