Home Buying in 60624>Question Details

Kenneth, Home Buyer in Chicago, IL

Property Appraisal report

Asked by Kenneth, Chicago, IL Mon Dec 28, 2009

Besides the obvious approximated property market value,what else is an appraisal suppose to tell you?

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Santiago Kensel Sanchez’s answer
The appraisals can write any comment they want related to property market value , and plus now they are doing comments in property condition .
for more info go to http://www.Chicago-appraiser.com
0 votes Thank Flag Link Wed Apr 17, 2013
The appraisal will tell you the square footage of the house, what type of heating system it has, if there is central air or units, the size of the property, whether it is located on a main road or more heavily travelled road, or if it backs either of these or something like a school or commercial property, and how all of these things affect the value of the property as compared with similar homes without these influences. A narrative may also discuss school district, communiting distance to a major city that might make it more desirable, and what the appraiser estimates to be the rebuilding costs, plus many more things. The simplest part of the appraisal is for the person to come to the home to take pictures, everything else that goes into an appraisal is what is time consuming.
Recent government regualations have stopped communication between a loan officer and an appraiser. because of this, most banks use appraisal management services. What these services do is call in appraisers that are willing to take a lower fee from them, who may not be as familiar with an area. Sometimes it doesn't matter, but other times you may have a similar house in a section of a town that is either much more or less desirable than the home being appraised, and the appraiser doesn't know about this. This, along with other new regulations that are going into effect on January 1st are supposed to protect the borrower when they are applying for a mortgage, and supposedly save them money, but in my mind it seems that these things are all costing people more, and will add to the confusion of an already difficult process.
0 votes Thank Flag Link Mon Dec 28, 2009
During the underwriting process, not only will the underwriter be able to ascertain the value of the property, but also if there's anything that needs to be addressed with regards to habitability.

Although not a home inspection, the appraiser will turn on the water, flush the toilets, check to see if the furnace works, etc.

This is especially important for FHA financing, where anything that affects the safety of the future occupants will come into play. Tripping hazards, broken windows, impropertly positioned downspouts, evidence of mold, etc., can all hold up the financing of a property.

In short, it tells you a lot.

Call me with any questions.

Matt Bukovy
Sr. Mortgage Consultant
Wintrust Mortgage
3317 W. Irving Park Rd.
Chicago, IL 60618
Cell 773-416-7107
Phone 773-654-2498
eFax 773-409-5558
0 votes Thank Flag Link Mon Dec 28, 2009

The appraisal is also used for verification of collateral for the loan you're taking out on that property.

Your lender wants to know that the property value is the same as what they are going to loan you.

It's also for the buyer's best interest to have the appraisal as you want to make sure you're not overpaying for a property. It can also reveal if the property is "over" built for the area comp's which means it may not be a good investment.

Bottom line is it's a justification factor for the price the property is being purchased for on the market. (the process is a little more in depth than this but I just tried to simplify it)

Best of luck!
Web Reference: http://weberhomes.INFO
0 votes Thank Flag Link Mon Dec 28, 2009
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