A lot of people may not know what a real estate appraisal is, so we put together this list of questions and asked one of the Lehigh Valleys most respected appraisers to answer them.

What exactly is a home appraisal?

An appraisal is an unbiased estimate of what a buyer might expect to pay – or a seller receives – for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party, most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the true value of their property.

Why do I need an appraisal?

The most common reason is for the purchase of a home. Almost all lenders require an appraisal to determine the limits they are willing to lend. Other reasons are for an estate- liquidation or establishing one; PMI removal – (private mortgae insurance); you want to sell your haome and you need to establish a sale price; to refinance your home; borrow money for home improvements. Any time you borrow money and real estate is being used as collateral an appraisal is usually reuired by the lender.

Whats the difference between an appraisal and a home inspection?

The difference between an appraisal and a home inspection is that an appraisal is used to determine the value of real estate for any use. A Home Inspection has nothing to do with value and is done to determine the condition of the many areas of a home and any possible problems with the home, such as the roof, heating or electrical systems.

Can’t my real estate agent give me an appraisal?

A real estate agent/broker can not do an appraisal. An appraisal may only be done by a state certified appraiser. An agent can give you a CMA or Comparative Market Analysis, that is a list of homes that have Sold recently, Are curently For Sale and those that have Expired. it does not give you value but gives you information to help you determine your own value for things like a sale price for example.

How much do appraisals cost?

Appraisal fees are set by each individual appraiser and by the type of appraisal needed. The average cost in the Lehigh Valley for a single family home is around $300, a multi family residence (more than 1 living unit) is a higher fee.

For more information regarding appraisals contact Hillstar Associates

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