In order to complete a mortgage loan, your lender may ask for a recognized appraisal from an Accredited Appraiser.
The appraisal should include:
- Unbiased assessment of the property’s physical and functional characteristics
- Analysis of recent comparable sales
- Assessment of current market conditions affecting the property
Although real estate agents will do their own market analysis to price a property — and most times do an accurate job — the licensed appraiser will come in with an independent, unbiased opinion to make sure the price is right; lending institutions will only use a licensed appraisers report.
What the appraisal report includes: Your appraisal—which could range in length from two or three pages to more than a hundred, depending on its scope—will include details about the house and property, a description of the neighborhood and side-by-side comparisons of similar properties. It will also contain an evaluation of the area's real estate market, notations of any major problems with the property that will affect its value and how long it took to sell the property.