Getting Your Home Appraised

Appraisals are an Important Part of Your Home Buying Transaction.

There are many reasons you may have an appraisal, but the most common is during the home purchase process.  Lenders will require an appraisal before lending you the money to purchase so that they know they are loaning money towards something that is worth the purchase price.

One item that many home buyers get confused with is that a CMA or Comp given to you by your real estate agent is not an appraisal.  Real Estate Agents have the capability to get very close to an appraisors official report, but a CMA is usually not near as detailed as an appraisal would be, and will not satisfy a lenders requirements. 

Most lenders will hire their own appraisors that they commonly work with to view the property you are looking to purchase.  These appraisors should be an independent third party that has no interest in the transaction to offer a fair value. 

It is possible that the appraisal can come in higher than the agreed upon purchase price.  If this is the case with your home purchase you should be excited as on paper you have equity in the home which increases your wealth simply by making a smart buying decision. 

If the property appraises lower than the sales price, the loan might be declined, but that doesn't mean the deal is off the table.  Work with your lender and agent to determine the best steps going forward to push the deal through if you so desire. 

Other Reasons To Appraise a Property

• Refinance or Home Equity Loan
• PMI Removal - "Private Mortgage Insurance"
• Divorce Settlement
• Estate Liquidation
• Relocation
• Home Improvements - To Determine Increase In Value

You Can Find a List of Nashville Area Appraisors and Appraisal Companies Here

Remember An Appraisal Isn't a Home Inspection! - Read Here About Home Inspections.