The mortgage process is just about verifying and documenting the various aspects of the home’s sale. Whether it’s confirming the buyer’s income and debts or that the house doesn’t have a significant problem with its foundation, some items are typically among the checklist of things that need to be done before the deal is closed.
The appraisal is one of them.
In short, an appraisal provides a professional evaluation of the home’s worth. Based on the size of the house and lot, as well as the prices of similar homes sold in the area, an appraiser will determine whether or not the home’s price is fair.
Sometimes, when a homeowner has an unrealistic idea of their home’s value, a lower-than-expected appraisal can be an issue. For that reason, a recent report from Quicken Loans tracking the difference between homeowners’ perception of their home’s worth and its appraised value is encouraging.
The Bottom Line
The report found that homeowners’ expectations and actual appraised value are more in line than they have been in more than three years. In fact, nationally, appraised values were just 0.33% off homeowner estimates in April.