Did you know that appraisal companies are an important part of the mortgage industry? According to HousingWire, a real estate research firm, more initiatives were released around appraisals in the mortgage industry in the last 18 months than seemingly launched in the past decade. These services are necessary in order for mortgage companies to make well-informed decisions about properties. Appraisals are used in both purchasing and refinancing homes. They're also used when you're selling a home. If you're in need of an appraisal, it's good to get an idea of how they work first. Let's look at four things you should know about appraisals.

1. What a Home Appraisal Is

A home appraisal is an evaluation of a home in order to estimate how much the home is worth. This isn't the same as the sale or asking price, but rather it gives all parties involved a standard to go by in order to set prices. It could differ quite a bit from the seller's asking price.

2. Who Performs Appraisals

Home appraisals are performed by appraisal companies. These professionals are trained to evaluate properties based on several factors. Appraisers are also experts in the housing market, so they understand how a home's value is affected by its location. Appraisals can only be completed by certified, licensed pros.

3. Why Appraisals Are Needed

Appraisals are required by mortgage companies to set a standard for the value of a house. This is then used to determine how much an asking price can be set at and it also sets the standard of how much a mortgage company would lend a buyer for the house. If the asking price of a house is too much, most lenders won't approve the loan. It's difficult for a seller to sell a home if they're asking for more than it's appraised for. This helps to create some regularity in the housing market.

4. How Appraisals Are Done

Whether you're buying or selling, it may be necessary to get an appraisal done. You would first need to contact some reputable appraisal companies in your area. You would then schedule to have the home evaluated. The appraiser would come out and evaluate the home based on many different criteria including location, age, materials, property, acreage, quality of home, damage, improvements, and more.

This is just some basic information on home appraisals. If you're looking for appraisal companies in your area, please contact Anthony Appraisers Inc today. We look forward to helping with all your home appraisal needs.