Determine The Fair Market Value Of Your Property With Home Appraisal In Californ

Posted by Annie Smith on March 22nd, 2016

When you think about buying a house, you think about plentiful cabinet space in your kitchen, or ample bedroom size. Whereas if you are selling a home, you are probably daydreaming about the home you plan on moving into next or wondering how much you can sell your current home for. Be it buying or selling, people presumably don’t give much thought about the home appraisal process. It isn’t one of the most glamorous parts of a transaction; yet it is a critical step.

A home appraisal is an unbiased professional opinion of a home’s value; especially, when a mortgage loan is involved. Mortgage lenders require an appraisal to be completed when you are refinancing your mortgage. In a purchase and sale transaction, an appraisal is used to determine whether the home’s contract price is appropriate- given the structural condition, location, amenities and recent sales of similar local properties. In case of refinancing, it assures mortgage lender that it isn’t handing the borrower more money than what the home is worth. They need to check out the property for anything that can devalue or increase its worth.

Home appraisal in California is basically conducted by highly-trained professionals, who are licensed and/or certified to determine the value of a home fairly, objectively and without bias. Hiring a professional to get the job done often leads to a question of how much a home appraisal will cost in California? The cost of home appraisals majorly depends on the property value, location, and size. One such appraisal costs a few hundred dollars and typically the buyer pays the fee at closing; although, you can opt to pay it up-front. A good faith estimate - also known as GFE - provided by lender will supply a fee for the appraisal.

Typically, a report prepared by appraisers describe the exteriors and interiors of the property, neighborhood, and nearby comparable sales. The appraiser then provides an analysis and conclusions about the property’s value based on his or her observations. Once you have gone through the report and reviewed appraiser’s supporting documents, you can challenge it, if you think it is inaccurate or doesn’t take into consideration new or important data related to the property or comparable homes. When everything goes smoothly, home appraisal is just another box to tick on a loan-closing checklist!

Author is a passionate writer. This article is about home appraisals in California.