© 2023 by ​MCDONALD&HARRIS. Proudly created with Wix.com.

  • w-facebook
  • Twitter Clean
  • Google Clean

How Appraisers Determine Value

November 12, 2018

Once a buyer and seller agree on a sales price, the contract is then sent to the lender for the loan approval process. One of the first things the lender will do is to order an independent appraisal. The appraiser will use local data to determine a value for the subject property.

 

The main purpose is to protect the lender in the event of borrower default by ensuring that the property is actually worth what the buyer is willing to pay, but this also protects the buyer from over-paying as well.

 

 

 

Determining Value

 

The process appraiser use to determine value is relatively simple. They start by searching for local comparable properties which have closed recently. They choose the 2 or 3 which most closely match the subject property and use them for comparison. Since these comparable homes have closed recently, they are assumed to represent market value.

 

Once the appraiser has the comparable properties identified, they will then compare the subject property to them. They will add or subtract value for size, location, amenities, features, upgrades and so on until they have a value for the subject property. This is then reported to the lender in the form of a final appraisal.

 

If you have any questions please give me a call! Remember..

 

...For anything Real Estate, Call Kate! 

 

Kate Montrony 

Licensed Sales Agent 

(631) 960-8881

Please reload

Featured Posts

5 Things NOT to do When Staging

May 7, 2019

1/7
Please reload

Recent Posts

March 16, 2020