Newport Bach Homes For Sale

It is important to distinguish the difference between a home inspection and a home appraisal.  There may be companies or individuals that offer both of these services however there are differences.  Both a home appraisal and a home inspection will likely look at the general condition of a home but a home appraisal is conducted mainly to determine the value of a home given current market conditions and the location of the property.

A home appraisal may be requested either by the owner of a home who wishes to know the value of their property or by a lending institution that is considering offering a home loan or the refinancing of a mortgage.  If it is a lending institution that has asked for a home appraisal they may have an individual or company that they generally work with but there should be no incentive or bias on the part of the person doing the home appraisal.

If you are having a home appraisal done and you have concerns about a potential interest or bias you can speak to the person doing the home appraisal, to the lending institution or to the regulatory body where you live.  This can be done either before the home appraisal is conducted or if you are not pleased with the results.

It is a common misconception that most of what someone doing a home appraisal takes into account is related to the condition of the home.  While this is a factor, a large part of the properties appraisal value has to do with the existing market conditions.  It can also be affected by the value of other homes in the area and generally a home appraisal will include examples of other properties that are similar to the one being appraised.

A home appraisal will generally also include any factors that may be an issue to a potential buyer of the property.  If the property is difficult to access or has adjacent properties that could cause a problem due to noise or other pollutants this can reduce the value of a home.

Home appraisal generally includes only the part of a real property that is considered to be permanent.  For instance if you have an in-ground pool this will likely be included in the value of your home.  If your pool is above-ground this would not be considered permanent and would not be included in the value of the home.  The same is true for structures on the property that are not considered permanent.

While it does not directly affect the value of a property, the home appraisal will often include information such as how long it would likely take to sell a property.  This may be part of the consideration of lending institution when it comes to financing home.

The results of a home appraisal are kept confidential including the value and the purpose of the home appraisal.  If you have ordered the home appraisal yourself then the firm or individual responsible for conducting it should share the results only with you.  This will be true if it has been paid for by lending institution and they may not necessarily provide you the information that they have received.