An appraisal is an estimate of the value of a property, made by a licensed and state-certified professional, called an appraiser. The sales price and the appraised value determine the loan amount.
If the appraised value comes in higher than the sales price, you are getting built-in equity. If the appraised value comes in lower than the sales price, we will need to work with the buyer and seller’s realtors to make any necessary adjustments.
The appraiser will determine a value based on:
- What it would cost to rebuild the home
- How it compares to other properties of similar size, quality and location that have sold recently