One of the most- asked questions from a new homeowner is, “what is an appraisal and why is it important?”
Most of the time, buyers think that appraisals are home inspections. But they are NOT! Appraisals are simply unbiased opinions of what the real value of a home is. They are done by licensed appraisers and are made to give the ideal value for a certain property depending on its current state, location, and features.
The best follow up question to that would be, “why is it important?”.
Appraisals are essential to the process of home buying. It gives the buyer peace of mind as to what the home they are purchasing is worth on paper and protects them so they are not getting a loan on a property for more than it is worth.
This is helpful for later when the buyers want to sell helping them to be in a position where they do not have a loan that is higher than the value of their home.