Choosing a home appraisal company.
Whether you’re buying a house or refinancing, an appraisal is part of your future. In a nutshell, appraisal companies look at your home, compare it to similar homes in the area to determine the market value of your place. Appraisals are safeguards against spending more on a house than it’s worth. What do you need to know about appraisals and appraisal companies?
Appraisal companies have appraisers who visit homes to determine its value. The appraiser will look at the following key things:
- Square footage of your home
- Damage that is visible on the interior and exterior of the home that might affect its value
- Verify any upgrades that have occurred
- Verify types of heating and cooling systems; and appliances
- Document the number of bedrooms and bathrooms
- Determine property size
- Note the condition of the basement
How do you choose an appraisal company? Your real estate agent may have a recommendation for a company they have worked with in the past who has done thorough and reliable work. Appraisers should be licensed and certified in the state of Minnesota, which ensures they meet statewide standards and qualifications. Although they don’t do a detailed inspection like a home inspector would, they do check the condition of the home and compare it to determine its worth. The appraisal company you choose should be independent from your bank or mortgage company to avoid any conflict of interest.
Once the appraiser has issued his report, and the numbers look good, the final steps in the closing process can take proceed as planned.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.