Understanding Real Estate Appraisals
Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.
When you refinance or sell your home, the lender involved will insist that an appraisal be performed. An appraisal is the process of valuing real property and is simply an opinion of the market value of your home based on what similar homes in your area have sold for in recent months by a licensed appraiser. But what is market value? Market value is the estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
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