If you’re in the market to purchase a new home or you’re simply trying to refinance your existing mortgage, you’ve probably heard a thing or two about hiring an appraiser. They are key to helping you establish the dollar value for what you pay or will be paid for your home. But what’s the point of hiring one?

Essentially, the role of the appraiser is to help lenders determine the estimated market value of a home in a certain real estate market. Mortgage companies and banks all have a vested interest in this number, since they want to be sure any home they “own” would be able to secure a good price at the current value, just in case the homeowner defaults on their loan. Another reason for an appraisal is to help anyone purchasing a property so they don’t pay well beyond what a home is actually worth. (This includes cash offers for purchase.)

If you currently own your home and wish to refinance your loan or potentially take out a HELOC (Home Equity Line of Credit), then an appraiser could help verify the home has either gained in (or at a minimum maintained) its value over time.

According to Realtor.com, appraisers will conduct an in-person home assessment through an on-site inspection as well as an off-site review of recent comparably-sized home sales (also known as “comps”) nearby.

To develop the comps, appraisers research the value of similar-sized homes in the same neighborhood. They also look at recent home sales, noting the final sales price (beyond just the asking price) and any housing trends for the market area. This could include things such as a new school on the horizon or a freeway that’s about to undergo a 10-year renovation.

In addition, the appraiser will most likely:

  • Walk through the property, room-by-room to assess the interior condition.
  • Examine the outside property to evaluate the exterior of the home.
  • Appraise any amenities or upgrades such as a finished basement, a renovated kitchen, a built-in sauna, or a new home addition.
  • Note any health or safety violations.
  • Record the property layout in detail.
  • Take photos of any noteworthy features, upgrades, or issues to address.

If you’re purchasing commercial real estate, appraisers can also complete a business valuation to assess the market value in a similar way.

If you’ve been looking for the right time to make your move to Pittsburgh, an honest appraisal could be the next right step. At George Moving and Storage, we would love to be a part of the moving process for you, no matter the time of year, and look forward to the opportunity to work for you. Contact us to learn more, or request a free quote today.