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What is a home appraisal?

On Behalf of | Aug 9, 2022 | Real estate transactions

There are several steps that must be taken when you are planning to buy a home in Arizona. Most people start looking for a home after they have been pre-approved for a mortgage. Once you find your dream home, it must pass inspection. Then, it’s time for the home to be appraised.

An appraisal is conducted to determine the fair market value of the home. The appraiser will look the house over to evaluate its condition and compare it to the value of other homes in the area. Once the appraisal is complete, the report will be sent to the mortgage company that pre-approved you.

How long does a home appraisal take?

The home appraisal process takes anywhere from a few days to a week from start to finish and costs the potential buyer $300 to $500. As long as the appraiser doesn’t discover any problems, you should be able to close on the home within two weeks.

What is the purpose of the appraisal?

The appraisal is conducted to ensure that the price you pay for your new home is fair. Some of the things that an appraiser looks at include:

  • Interior conditions. The number of bedrooms and bathrooms will be recorded. Other interior factors that will be evaluated include the square footage of the home, appliances and amenities.
  • Exterior factors. The appraiser will look for any damages to the outside structure, such as the roof, walls, garage and patio. Construction materials used to build the house, as well as the location of the house, all go into the appraiser’s report.

Should the appraisal report indicate that the asking price for the home is too high, you have some room to negotiate. Consider your options carefully before making a final offer.