Appraisal

Appraisals are different than home inspections. While an appraisal amount factors in anything found by the home inspection, it focuses on the valuation of your home. Appraisals consider location of the home and any relevant past sales data as well as the lot size and condition. The buyer’s lender will require an appraisal. Depending on their loan contract, the buyer may pay for the appraisal during the loan application or as part of their closing costs out of pocket.

What you’ll see from the appraiser is a detailed evaluation about your property including comparatives regarding similar properties. The appraiser will also note any serious defects in the home—which should have also been caught during the home inspection.

Different from a broker’s price opinion, the appraisal information is the only valuation the buyer’s lender will incorporate into their loan decision.